Microsoft Targets Nintendo Switch 2 With Xbox ROG Ally Launching October 16

Benzinga
2025.08.22 06:40
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Microsoft is launching its Xbox ROG Ally handheld console on October 16, targeting Nintendo's Switch 2 after its successful launch. The device, developed with Asus, aims at hardcore gamers and offers a premium gaming experience. This move comes as Microsoft seeks new revenue streams amid declining console sales. Meanwhile, Nintendo's Switch 2 has set a high benchmark with 5.8 million units sold in seven weeks, leveraging exclusive franchises. Sony remains absent from the portable market despite potential opportunities.

Microsoft Corp. MSFT is re-entering the portable gaming market with its Xbox ROG Ally console, targeting Nintendo Co. Ltd.‘s 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. 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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