We're been hearing rumors for what feels like an eternity about Microsoft working with ASUS' ROB division on a gaming handheld device and we got confirmation during the Xbox Games Showcase at Summer Game Fest.

Microsoft officially revealed its newest hardware, an Xbox-branded version of Asus’ next ROG Ally PC gaming handhelds. The new devices has Xbox controller-like fins on the sides and blue and green rings around the analog sticks.

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.