Xbox's new handheld will use AMD's AI chip technology to help supercharge the user experience, but exact details remain unclear.

Today, Microsoft made history by announcing the first-ever Xbox handheld. ASUS is manufacturing a duo of Xbox handhelds--the ROG Xbox Ally and Xbox Ally X--for release in 2025. The higher-end Ally X has AMD's AI Z2 Extreme chip, which leverages an NPU (Neural Processing Unit) for integrated AI capabilities.
We're not exactly sure how Microsoft is using the AI features for the Xbox Ally X, but the company has made strides in its AI gaming efforts with its MUSE generative AI platform, which can render gameplay in real time, as well as Copilot for Gaming, a digital assistant for gamers.
In a recent video published on the Xbox YouTube channel, key people from AMD, Xbox, and ASUS all discuss the Xbox Ally.
Head of Xbox devices Roanne Sones had something interesting to say about AI on the new handhelds:
"We have integrated in the power of AI experiences in ways that haven't even been imagined."
What could this refer to? A better Copilot for Gaming? Some sort of new tool for better user customization? Or is AI being used for most things, including the new optimized Xbox experience--which is a conjunction of content, services, UI and UX adjustments befit of an actual Xbox console.


Below we have a string of quotes that give us a better idea of what to expect from the Xbox Ally and Xbox Ally X in terms of functionality, performance, and AI integration.
"That means for the player it's easier to enjoy, easier to enjoy, and having help--AI is a companion for players," ASUS Shawn Yen said.
"Think of all the use cases that would blend AI based audio, AI-based gaming assisting functions, AI-based rendering capabilities," said AMD exec Sebastien Nussbaum.
"The Ryzen AI Z2 Extreme is the absolute best in terms of handheld processors that you can have today," ASUS senior product manager Gabriel Meng said.
"The industry-leading AI engine in your handheld device...inconceivable even three years ago," said AMD's SVP of computing and graphics Jack Huynh.
The ROG Xbox Ally and Xbox Ally X will be available in holiday 2025. No pricing or exact availability have announced. For more info, check the spec sheet here.




