The most notable difference between the Xbox Ally and the Steam Deck is the operating system. Like the ROG Ally, the Xbox Ally will also use Windows 11, while the Steam Deck uses Valve's SteamOS.

Not least because the ROG Xbox Ally will also let you download apps for Steam, GOG, and the Epic Games Store, among other digital shopfronts, and you'll theoretically be able to enjoy games across those libraries seamlessly, though I'm not sure yet whether they'll be marked with the same performance badges as native Xbox games.

Microsoft also revealed details on how game compatibility works for the handheld gaming PCs.