Microsoft has reportedly killed its in-house Xbox handheld to focus on its new ROG Ally platform

Microsoft has reportedly canceled its in-house Xbox handheld to focus on the newly announced ROG Xbox Ally and ROG Xbox Ally X.

Before the Asus-built handhelds were revealed, a report from Windows Central claimed Microsoft had essentially sidelined its own, in-house handheld. Now, The Verge (paywalled) reports that the handheld has essentially been canceled altogether as Microsoft commits to its ROG Ally range of mobile devices.

It makes sense for Microsoft to avoid muddling its long-rumored and highly anticipated entry into the handheld space with two entirely different system lineups – three, rather counting the Ally and Ally X – but it's good to have reliable reporting showing that's the case.

It also partially explains why Microsoft has been stressing, in promotional materials and interviews, the whole Xbox-ness of what is, at its core, a branded Asus ROG Ally that boots straight into the Xbox app with a custom OS. Now that it's evidently moving on from a full-blown in-house Xbox handheld, it's time to really lay on just how Xbox-y the apparent replacement is.

Microsoft has been billing the ROG Xbox Ally as something of a hybrid platform combining the open-ended freedom of Windows, which will let you use whichever storefronts and applications you want, with the seamlessness and dedication of a traditional games console. The hardware is as standard as it comes, and we still don't know the price, so a lot of potential is tied to its modified operating system.

Xbox boss Phil Spencer recently said the handheld is "the tightest collaboration" he's seen between the gaming and Windows teams in his roughly three decades with the company.

For a breakdown of the two Xbox handheld's specs, don't miss our guide to ROG Xbox Ally vs ROG Xbox Ally X, and check out our ROG Xbox Ally hands-on for our impressions.