Asus is ramping up production of its Xbox-branded ROG Ally X handheld after launch sales significantly outpaced expectations, leaving premium models in short supply across key markets.

The device, which arrived on 16 October, has seen what Asus describes as an “extremely positive” market response, particularly for the higher-end configurations that command a steep price.

Despite criticism around the cost (the top-tier model sits at A$1,599), the company says demand has been stronger than forecast.

Speaking during its latest investor briefing, Asus highlighted that the ROG Ally line, which was introduced 2–3 years ago, has matured into a reliable growth driver within its gaming portfolio.

The third-generation ROG Ally, developed in deeper partnership with Microsoft and running the Xbox Fullscreen Experience atop Windows, appears to be accelerating that trajectory.

“Premium higher-end models have exceeded our expectations,” Asus told investors, adding that those variants are now in short supply.

The company said it is working closely with component suppliers to “ramp up production and fill the demand gap that exists.”

Asus ROG Ally X

The Ally X positions itself as a more versatile alternative to dedicated handhelds like Valve’s Steam Deck, capable of running Xbox Game Pass titles alongside games from Steam, Epic and other PC storefronts.

While not a “true” Xbox handheld, Microsoft has heavily marketed it as part of its broader ecosystem push.

Analysts say the strong launch suggests appetite for high-performance Windows-based handhelds remains robust, even as competition intensifies from Lenovo, MSI and Valve’s newly announced Steam Machine.

Asus expects the Ally range to generate between US$96–$160 million this quarter. Looking ahead, the company forecasts steady quarterly revenue of US$130–$160 million as supply stabilises.