Microsoft Corp. (NASDAQ:MSFT) is re-entering the portable gaming market with its Xbox ROG Ally console, targeting Nintendo Co. Ltd.‘s (OTC:NTDOY) dominant Switch 2 following its record-breaking launch performance.
The tech giant unveiled the handheld device at Germany’s Gamescom trade show, announcing October 16 availability without revealing pricing details, Japan Today reported. The move comes as Microsoft seeks new revenue streams amid declining console sales and modest Game Pass subscription growth.
Xbox ROG Ally Targets Premium Gaming Market
Developed through partnership with Taiwan-based Asus, the Xbox ROG Ally features a central screen with dual side grips containing joysticks, triggers and buttons mirroring traditional Xbox controllers.
“We’re really designing and building around an entire ecosystem of devices, to allow people to play where they want, how they want,” said Jason Ronald, Microsoft Vice President of console development.
The device positions itself as a premium alternative for hardcore gamers, differentiating from Nintendo’s family-focused approach. Industry analysts note Microsoft targets existing Xbox and PC owners seeking portable gaming solutions.
Switch 2 Sets Market Benchmark
Nintendo’s Switch 2 achieved 5.8 million units sold within seven weeks, establishing new portable gaming benchmarks that competitors aim to challenge.
“The Switch 2 has that unique thing of games that are nowhere else,” said Rhys Elliott of data firm Alinea Analytics, citing exclusive franchises like Mario and Zelda as competitive advantages.
Sony Remains Sidelined Despite Market Potential
Sony Group Corp. (NYSE:SONY) remains absent from portable gaming despite the PlayStation Portal’s estimated 2 million sales. The company withdrew after 2011’s PlayStation Vita underperformed compared to the successful PlayStation Portable’s 76 million units.
Gaming industry sources, according to Japan Today, suggest Sony may develop portable PlayStation 6 capabilities, though next-generation console releases remain years away. The portable gaming segment shows “strong potential for the future,” according to Circana‘s Mat Piscatella.
Christopher Dring of The Game Business emphasized engagement strategy: “If you can get your players to play your games more, they will spend more” time and money across Microsoft’s ecosystem.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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