In a world where Xbox fans have anxiously awaited new hardware for five long years, it’s refreshingly surprising to see that the first major Xbox handheld isn’t even from Microsoft. Enter the Asus ROG Xbox Ally, a sleek device that looks like an Xbox controller sliced in two with a screen slapped on. But with rumored pricing that could leave many gamers gasping, will it even have a fighting chance?

Recent leaks from the Spanish gaming site 3DJuegos hint at shocking prices: a modest 600 euros for the Xbox Ally equipped with a Ryzen Z2A chip and a staggering 900 euros for the upgraded Xbox Ally X, boasting the Ryzen Z2 Extreme APU. In dollars, that translates to roughly $700 and $1,050! Given the unpredictability of tariffs, U.S. pricing might veer even higher, making this handheld a luxury item rather than an accessible gaming tool.

Despite the sky-high sticker shock, it’s essential to remember that Asus has several months to finalize its pricing before the expected launch later this year. The price leaks could merely be retailers taking educated guesses based on current tech costs in Europe. However, this situation is alarming given the track record of rising prices in the handheld PC market—especially when Asus recently hiked the price of its ROG Ally X from $800 to $900.

Currently, the best budget handheld is the Steam Deck with an LCD screen, while the more sought-after OLED option goes for around $550. Lenovo’s SteamOS-powered Legion Go S often falls into the same price range. Competing Windows devices like the Xbox Ally could come at a higher cost due to licensing fees, raising the question: Is Microsoft even giving Asus a break on prices for attaching the Xbox label?

The ROG Xbox Ally promises a unique experience, running a specialized version of Windows tailored for handheld gaming, centered around the Xbox app. While it’s set to support big names like Steam and Epic Games, it’s still unclear if it will embrace smaller platforms like GOG or accommodate emulators. On the upside, it can boot into full Windows, offering gamers the freedom to play their entire library.

As gamers hold their breath, one thing is clear: if Asus wants the Xbox Ally to succeed, they need to trim the fat on prices before it hits the market. Will the gaming giant's audacious handheld become a must-have or just a costly dream?