When Microsoft and ASUS announced the ROG Xbox Ally and its higher-end sibling, the Ally X, many players were surprised to see price tags of $599.99 and $999.99.
One thing the reveal didn’t mention is that these numbers weren’t set from the start. Multiple reliable industry voices have since revealed that both companies explored ways to launch the handhelds at a lower cost before those efforts quietly stalled.
Was a Price Cut Ever on the Table Before Launch?
Microsoft and ASUS reportedly discussed covering part of Ally’s hardware cost, allowing the retail price to drop.
Early price leaks drew backlash, and players felt asking close to a thousand dollars for the top model would be a tough sell.
According to reports, this reaction led the partners to delay their planned price announcement at Gamescom 2025 while they revisited the numbers and debated whether they could afford to lower them.
What Went Wrong With the Idea of Making the Ally Cheaper?
Although those behind-the-scenes talks were real and confirmed by reliable insiders, they never materialized.
No official explanation was given, but looking at what journalists and analysts have shared helps piece the picture together.
Microsoft and ASUS were dealing with an unpredictable U.S. import climate with tariffs on Chinese-made electronics shifting.
The cost of parts and assembly was increasing, which reduced the chance to price the hardware below cost. On top of that, subsidizing a premium handheld only makes sense if the product can sell in huge numbers to recover losses through software or services.
The Windows handheld market is still small compared to giants like the Nintendo Switch or even the Steam Deck, so betting on high volume carries a lot of risk.
Some insiders hinted that one side might have hesitated to sacrifice profit margins or take on deeper losses per unit, which meant the two companies couldn’t fully align on a subsidy plan.
And even if they wanted to react to the backlash over leaked prices, the October launch was already locked in and supply chains were set, leaving little time to rebuild the financial model before production deadlines.
What Would the Cheaper Prices Have Looked Like?
Insiders say the internal target during those price talks was closer to $499 for the base Ally and $799–$899 for the Ally X.
Landing there would have made the entry model far more competitive with Steam Deck while keeping the X within reach of players who want higher specs.
However, with tariffs, cost uncertainty, and a small market, the plan failed to reach consumers before it died.
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