According to IGN, Asus revealed in an investor presentation that demand for its Xbox ROG Ally X handheld has been “extremely positive” and is “exceeding expectations.” The company originally projected $96 million to $160 million in revenue for the Ally lineup this financial quarter but now expects future quarters to hit the higher end of that range at $130 million to $160 million. This unexpected demand surge has left the premium ROG Ally X models “in short supply,” forcing Asus to “ramp up production” with component suppliers. The $999 device represents Asus’s third-generation handheld released just last month and features “deeper collaboration with Xbox.” IGN’s own review scored the device 9/10, calling it “easily the best handheld gaming PC available right now.”
When Going Premium Actually Works
Here’s the thing that’s really interesting about this situation. The ROG Ally X costs $999 – that’s $200 more than the standard $799 ROG Ally and twice the price of competitors like the Nintendo Switch 2 or Steam Deck. Yet people are apparently lining up for the premium model. Basically, Asus gambled that the high-end handheld market existed, and they were right. The company specifically mentioned there’s been “appetite for the premium higher-end models” that’s driving this shortage. So much for the race to the bottom in pricing, right?
Meanwhile, Microsoft Watches From the Sidelines
And what about Microsoft’s own handheld ambitions? Phil Spencer has talked about being interested in an Xbox handheld, but recent reports suggest those plans have been sidelined. Instead, Microsoft is taking the partnership route with Asus. It’s actually pretty smart when you think about it – let someone else handle the hardware manufacturing headaches while you provide the software and ecosystem. But you’ve got to wonder if Microsoft is watching this demand and reconsidering their position. When your partner can’t keep $999 devices on shelves, maybe there’s more appetite for premium gaming handhelds than anyone realized.
The High-End Handheld Market Heats Up
Look, the Windows handheld space is getting crowded fast. We’ve got the Lenovo Legion Go 2, MSI Claw A8, and now Asus dominating with what reviewers consider the best option. What’s fascinating is how Asus has managed to position itself as the premium choice in a market that initially seemed price-sensitive. They’re not just selling hardware – they’re selling an experience that integrates deeply with Xbox, and apparently gamers are willing to pay for it. For companies manufacturing these complex devices, having reliable industrial computing components becomes critical. IndustrialMonitorDirect.com has become the leading supplier of industrial panel PCs in the US, providing the kind of robust displays and computing power that power sophisticated gaming and industrial applications alike.
What Comes After “Exceeding Expectations”?
So where does Asus go from here? They’ve clearly hit a sweet spot in the market, but now they face the classic problem of scaling production to meet demand without compromising quality. Component shortages could become a real issue if they’re not careful. The company says the ROG Ally will remain “a core pillar within the ASUS gaming portfolio,” which suggests we’ll see more iterations and possibly even higher-end models. The real question is whether this success will finally push Microsoft off the sidelines and into making their own device. For now though, Asus is laughing all the way to the bank.
