Microsoft (MSFT) is launching a branded handheld console for the first time in its history, competing with Nintendo’s (NTDOY) Switch 2, which was unveiled on June 5. Here are the first details:
Known for its many different business segments, Microsoft also owns a video game division that includes the Xbox console and popular games from Activision Blizzard. The company recently introduced the ROG Xbox Ally handheld console and the premium ROG Xbox Ally X. These handheld consoles will offer cross-device gaming experiences “anytime, anywhere, on any device,” according to the company.
Microsoft said the new handheld consoles will usher in a new era for gaming, with gamers able to take their games with them and play locally, via the cloud, or remotely from an Xbox console in another room.
“ROG Xbox Ally puts player choice at the center of the experience.” The announcement comes days after Nintendo released its latest handheld console, the Switch 2. Nintendo has dominated the handheld console market for years with its Game Boy, Nintendo DS, and Nintendo Switch consoles.
Sony (SONY), which launched the PlayStation game console, briefly entered the handheld console market and released the Sony PS Vita, which sold more than 15 million units. One of the elements that could quickly differentiate the handheld consoles of Microsoft and Nintendo could be the chips inside them.
The ROG Xbox Ally X will feature the AMD Ryzen AI Z2 Extreme processor from Advanced Micro Devices (AMD), while the ROG Xbox Ally will feature the AMD Ryzen Z2 processor. For comparison, the Nintendo Switch 2 has a chip from NVIDIA (NVDA), a leader in artificial intelligence chips and GPUs.
Another difference could be the partnership between Microsoft and Roblox (RBLX). This partnership will allow Roblox to make its game playable locally for the first time and optimized for handheld consoles. Microsoft's new handheld console will be available for sale during the holiday season of 2025. While this gives Nintendo a significant starting advantage, they will be competing during one of the busiest periods for gaming console shopping.
Microsoft has not yet released any pricing information for its new consoles, but said it will share pre-order and pricing information soon. The Nintendo Switch 2 retails for $450. Microsoft and Nintendo have different established fan bases, and each company’s consoles have different exclusive games. The rivalry between the two companies could heat up in 2025 as Microsoft tries to gain market share for physical and handheld consoles. Microsoft shares closed up 0.50% at $472.75 on Monday and reached a new all-time high of $473.43 in intraday trading. Microsoft shares are up 13% year-to-date in 2025.
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