This isn’t quite what we expected to see last year, but the ROG Xbox Ally still marks a new chapter in the rapidly developing “handheld war.”

Microsoft has needed to respond to SteamOS ever since the Steam Deck launched three years ago, and it has steadily been tweaking its Xbox app and the Xbox Game Bar on Windows to make both more handheld-friendly. But there was always a bigger overhaul of Windows required, and we’re starting to see parts of that today.

During the Xbox Games Showcase, Microsoft finally revealed its handheld in a partnership with Asus. The ROG Xbox Ally will come later this year and will be available in two variants.The new portable comes in two versions: the ROG Xbox Ally and Xbox Ally X.