The most notable difference between the Xbox Ally and the Steam Deck is the operating system. Like the ROG Ally, the Xbox Ally will also use Windows 11, while the Steam Deck uses Valve's SteamOS.

Because it sure does borrow a lot from the Deck, especially when it comes to how it categorizes different levels of compatibility, though I would argue Xbox's approach is marginal

Despite coming in a smaller package, the ROG Xbox Ally comes pre-installed with Windows 11 and acts as both a fully functional PC and a gaming device. A performance version of the handheld, dubbed Ally X, will have 24 GB of RAM and slightly better graphics performance capabilities.