Created in partnership with ASUS, these handhelds are designed to deliver a full Xbox gaming experience in a portable format.

Microsoft has proven that Windows 11 comes with bloatware that impacts gaming performance through its new PC gaming handhelds, which do not have the bloat.

Inside the Xbox Ally X is an AMD Ryzen AI Z2 Extreme processor, a custom version of its Z2 Extreme chip with eight Zen 5 CPU cores, 16 RDNA 3.5 GPU cores, and 50 AI TOPS from the onboard NPU to help with a range of AI tasks. It'll have Copilot built in, too, so expect some chatbot integration.

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.

Microsoft (NASDAQ: MSFT) continues to provide investors with earnings beats and strong growth in its cloud, AI and gaming segments.

We asked Seeking Alpha analysts Kenio Fontes and Daniel Jones for their picks. Kenio Fontes: Two companies stand out for me in the industry, Nintendo ( OTCPK:NTDOF) and Take-Two Interactive (NASDAQ: TTWO ), and both have interesting catalysts.