Microsoft has finally revealed its highly-anticipated handheld console, years after it was first rumoured.

The ROG Xbox Ally will let gamers access their Game Pass subscription library on-the-go, in effect meaning members will start off with hundreds of games.

It is being made in partnership with Asus, which has been making handheld gaming devices since 2023, and will be released at the end of 2025 – though it is unknown what it will cost.

Speculation over Microsoft making a handheld Xbox has been widespread for more than a decade, with the company starting and scrapping various efforts over the years.

Microsoft’s announcement comes just three days after the launch of the Switch 2.

Much like its predecessor, the Switch 2 is a hybrid gaming device – meaning it can be both played on-the-go and connect to a TV.

Its success likely led to the design of Valve’s Steam Deck, a handheld PC which gives gamers access to the entire library of titles they’ve bought through game distribution service Steam – though not all the games work on the device.

It means Microsoft may be accused of being slightly late to the game when rivals already exist in the space, but the benefit of native support for Game Pass will likely address a lot of concerns for its 34 million subscribers.

Microsoft’s new handheld will comes in two flavours, the ROG Xbox Ally and ROG Xbox Ally X.

“Whether you’re at home or on the go, your favorite games should follow you,” said Xbox head of gaming devices Roanne Sones.

“Both handhelds allow players to play natively, via the cloud, or remotely with their Xbox console in another room.”

The two versions both share a 7 inch screen with 1080p resolution.

The base version comes with 16GB memory and 512GB storage, while the “X” version has 24GB memory and double the storage.

The more powerful version of the handheld also has a bigger battery and a more powerful processor.

In both cases, Xbox will be hoping to convince players that it offers something out of the box that its rivals don’t – Microsoft’s operating system.

“Because these handhelds run Windows, you have access to games you can’t get elsewhere, so you can enjoy the full freedom and versatility of PC gaming,” said Ms Sones.

In other words, gamers can leave the Xbox app and launch other gaming platforms – such as Steam and EA Play – through the device.

But all that capability comes at a cost when it comes to weight.

At 670g and 715g respectively, the base and X versions of the Xbox Ally may be heavier than handheld gamers are used to – with Nintendo’s new Switch 2 weighing a fair bit less at 534g.

And there remains one big unanswered question – the price.

Microsoft decided not to reveal how much its new handheld will cost, but it goes without saying the more powerful X version will also be more expensive.

The Switch 2, which has a similar screen, retails at £395 in the UK, while the Steam Deck costs between £349 and £569 depending on the specs.

Part of the success of Game Pass is many highly-anticipated new releases appear on the service on launch day, meaning gamers can save money by subscribing – though you lose access to a game if you cancel your subscription.

At its showcase event where it unveiled the new handheld, Microsoft announced several new games – including a reveal that 17 new titles will come to Game Pass PC & Ultimate on day one.

Many of these are highly-anticipated games such as Tony Hawk’s Pro Skater 3+4, Ninja Gaiden 4 and Outer Worlds 2.

It also includes the new Call of Duty: Black Ops 7 when that releases – likely later this year.

The new game will be a sequel to the critically-acclaimed Black Ops 2, which first released in 2012.

Interestingly, while the game was confirmed for several consoles, there was no mention of the Switch 2 at the event – despite Nintendo previously signing a 10-year deal to bring the series to its consoles in 2022.

But there’s something else which many gaming fans will have been excited to finally see revealed.

The much-anticipated Persona 4 remake, subtitled Revival, is set to be remade 17 years after it was first released on PlayStation 2.

The original, which sees a group of friends investigate a series of murders in the Japanese countryside, is considered a gaming classic.

But fans of the series will have to wait, as Sega and Atlus did not share a release date for the remake.