"The Xbox Ally X is the first handheld to leverage the top-of-stack AMD Ryzen AI Z2 Extreme, paired with a powerful neural processing unit (NPU) to unlock upcoming AI powered features starting early next year—with more to come:

Microsoft also has a handheld compatibility program to showcase which games run well on the new Xbox Ally devices.

According to the VP, Microsoft envisions players having options like the Xbox ROG Ally for when they're on the move, and dedicated hardware when they come home that'll allow them to pick up from right where they left off.