Microsoft Corp. is re-entering the portable gaming market with its Xbox ROG Ally console, targeting Nintendo Co. Ltd.'s dominant Switch 2.

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.

Like the ROG Ally, the Steam Deck was conceived as an on-the-go alternative to a powerful gaming PC. With its portable, Microsoft is targeting “people that already own Xboxes and potentially a PC”, said Christopher Dring, founder of the specialist website The Game Business.