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This is how Microsoft is combining Windows and Xbox for handheld PCs

Microsoft and Asus have just announced two ROG Xbox Ally devices that include a new full-screen Xbox experience for handhelds. After promising to combine “the best of Xbox and Windows together” for handhelds earlier this year, Microsoft is now revealing exactly how it is overhauling the Xbox app, Game Bar, and Windows itself to better compete with SteamOS.

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.

“The reality is that we’ve made tremendous progress on this over the last couple of years, and this is really the device that galvanized those teams and got everybody marching and working towards a moment that we’re just really excited to put into the hands of players,” says Roanne Sones, corporate vice president of gaming Devices and ecosystem at Xbox, in a briefing with The Verge.

Microsoft demonstrated this handheld-friendly combination of Windows and Xbox to The Verge in a briefing earlier this week, but it was a virtual demo so we haven’t been able to try it fully yet. It all starts by booting directly into a new Xbox full-screen experience on these ROG Xbox Ally devices that focuses on the Xbox app and Game Bar, alongside being a launcher for all your PC games — yes even Steam ones.

“We were able to take people who have been working on the Xbox OS for 20 years or more and have them work directly on the Windows codebase and start reimagining what that operating system looks like for this form factor,” explains Jason Beaumont, vice president of experiences at Xbox. “These two things combined led us to build a bunch of features.”

The Xbox full-screen experience is very much the compact mode of the Xbox app taking full control of the ROG Xbox Ally devices, instead of the familiar Windows desktop and taskbar. “When the player boots into the full-screen experience there is a whole bunch of Windows stuff that doesn’t get loaded,” says Beaumont. “We’re not loading the desktop wallpaper, the taskbar, or a bunch of processes that are really designed around productivity scenarios for Windows.”

You can still exit this full-screen mode and launch the full version of the Windows desktop, but by default it will by hidden away. “We’ve reduced many notifications and pop-ups, and we will continue to listen to feedback from players to make continued improvements,” says Sones.

The Xbox app itself in full-screen mode looks very similar to what exists on Windows right now, except the library is now full of all of your PC games from Steam and other stores, alongside ones from Xbox Play Anywhere and Game Pass. Where it really gets interesting is the Game Bar.

“We’ve made a lot of improvements to Game Bar over the last year, and really it was driving towards this device,” says Brianna Potvin, principal software engineering lead at Xbox. A short press on the Xbox button on the Xbox Ally devices brings up the Game Bar interface, and you can use this to access device settings like Wi-Fi or Bluetooth, Asus’ Command Center interface, and even Microsoft’s new Gaming Copilot. If you long press on the Xbox button then you’ll even get a more handheld-friendly task switcher, which lets you alt+tab between apps and games using the controller.