Leaked Xbox Handheld Could Trouble Valve's Steam Deck

It looks like a real Xbox handheld is finally on the horizon. A recent leak from the United States FCC (Federal Communications Commission) has given us our first look at what could be Microsoft's entry into handheld gaming. While there's been no official announcement yet, this leak strongly suggests that Xbox is preparing to enter the portable gaming market in a meaningful way.

The leak features two versions of the upcoming ASUS ROG Ally 2, one in white and one in black. The white version seems to be the standard model. However, the black one includes a dedicated Xbox button in the top-left corner. This specific button is not present in the regular version. It is small but an important detail, pointing towards the black version being an Xbox Edition of the ROG Ally 2 and potentially marking the first real attempt of Microsoft at a handheld Xbox device.

Now, what makes this leak a big deal? This is much more than about just looks or branding. The Xbox button that's missing from the regular version likely connects straight to the Xbox PC app, turning the device into a portable Xbox. This isn't just a gaming PC you can carry around; it could be the start of a new kind of Xbox experience.

Earlier this week, reports indicated that Microsoft has been investing heavily in upgrading the Xbox PC app. This leak fits with that description, hinting that the company's future hardware, including home consoles and handhelds, will run on a version of Windows. These devices will not function like regular PCs but will instead boot into a custom Xbox interface, delivering a smooth and console-like experience.

In other words, future Xbox devices will be more than just machines that play Xbox games. They will be Xbox consoles in every sense, built on Windows but designed to look and feel like a traditional gaming system. This is a major shift in strategy, and this handheld could be the first sign of that change.

The collaboration with ASUS is more than just a partnership for looks. It seems to be a testing ground for hardware and software ahead of Microsoft's official next-generation release. ASUS is already respected for its gaming hardware, and the original ROG Ally stood out as a strong competitor to the Steam Deck.

The ROG Ally 2 is expected to improve on the first model with better performance, longer battery life, and a more comfortable design. Leaked photos show enhanced grips that might look unusual at first but are said to feel great, similar to how the PlayStation Portal surprised many with its comfort despite its strange appearance.

If this Xbox Edition delivers on power, comfort, and full access to Xbox Game Pass, cloud gaming, and local installs through the Xbox app, it could quickly become one of the top handheld devices for gamers.

It's important to remember that this device might not be the final version of Microsoft's own handheld. Think of it more as a public test run. By working with ASUS, Microsoft can gather real-world feedback, refine the Xbox app for handheld use, and shape what its future Xbox system should be like.

Both companies benefit from this. ASUS gets to release a standout gaming device with Xbox branding. Microsoft gets a chance to test their future plans using actual hardware.

Now that the leak is out, everyone is wondering when Microsoft will make it official. All signs suggest we'll hear more soon, likely during the Xbox Summer Showcase next month. This event is where Microsoft usually announces new games and hardware. With the leak already stirring excitement, it would be the perfect time to reveal the handheld publicly.

If that happens, we can expect full details on the specs, pricing, release date, and most importantly, how deeply connected this device will be to the Xbox platform.

For those who have been waiting to play Xbox games on the go without relying only on cloud streaming, this could be the breakthrough. While cloud gaming will still be part of the experience, the ability to play games locally, earn Xbox achievements, and continue progress across devices could bring console and PC gaming closer than ever before.

This is more than just a gaming PC with an Xbox label. It looks like the beginning of a much larger plan, one where Xbox isn't tied to a living room TV. It's a future where you can carry the full Xbox experience with you wherever you go.

Even though the leak may not have been intentional, it offers a clear glimpse of what's coming. A unified Xbox ecosystem that includes powerful, portable devices running on Windows but designed to feel like consoles. With ASUS helping shape this future, the results could be impressive.

Stay tuned for more updates, especially as the Xbox Summer Showcase approaches. One thing is clear. Xbox is going mobile, and it could change gaming in a big way.