ASUS ROG Ally 2 and Xbox-Branded Project Kennan Handheld Leaked: Specs, Design, and Market Impact

May 7, 2025 - Leaks from FCC certifications, Indonesian and Korean regulatory filings, and industry insiders have revealed ASUS's next-generation handheld gaming PCs: the ASUS ROG Ally 2 and an Xbox-branded variant codenamed "Project Kennan." Set to launch in mid-2025, these devices aim to solidify ASUS's dominance in the handheld gaming market while advancing Microsoft's vision of unifying Xbox and Windows platforms. With new details emerging about specifications, design, software, and market context, here's an in-depth look at what these handhelds offer and their potential impact.

Specifications: Two Models, Two Tiers

The ROG Ally 2 lineup comprises two models tailored to distinct market segments:

ROG Ally 2 Xbox Edition (Black) / Project Kennan:
- Processor: AMD Ryzen Z2 Extreme (8 cores, 16 threads, 36W TDP), built on Zen 5 architecture for high-performance gaming.
- RAM: 64GB LPDDR5-8533, enabling seamless multitasking and support for demanding AAA titles.
- Storage: Expected 1TB NVMe SSD (based on trends in premium handhelds, though unconfirmed).
- Display: 7-inch, 120Hz, 1080p LCD (no OLED confirmation, aligning with the original ROG Ally's panel).
- Positioning: A premium device targeting enthusiasts and Xbox fans seeking top-tier performance.
ROG Ally 2 (White):
- Processor: AMD Aeirth Plus (4 cores, 8 threads, 20W TDP), a power-efficient successor to the Steam Deck's Van Gogh APU.
- RAM: Likely 16GB or 32GB LPDDR5 (based on budget handheld trends, unconfirmed).
- Storage: Expected 512GB NVMe SSD (scalable to 1TB, following the original Ally's design).
- Display: 7-inch, 120Hz, 1080p LCD (assumed to match the black model).
- Positioning: A budget-friendly option competing with entry-level handhelds like the Steam Deck.

Both models leverage AMD's Ryzen Z2 series chips, optimized for handheld gaming. The Z2 Extreme offers superior performance for titles like Cyberpunk 2077 or Starfield at medium-to-high settings, while the Aeirth Plus prioritizes efficiency for lighter games and longer battery life. Recent X posts suggest the Z2 Extreme could deliver 20-30% better performance than the Z1 Extreme in the original ROG Ally, based on early benchmarks of Zen 5 APUs.

Design: Ergonomics, Xbox Integration, and Trade-Offs

The ROG Ally 2 introduces a redesigned chassis described as resembling a gaming controller, with some likening it to a GameCube controller's aesthetic. Key design features include:

Ergonomics: Larger, contoured grips to improve comfort during extended play, addressing complaints about the original ROG Ally's cramped handling.
Ports: Two USB Type-C ports (one USB 4.0, one USB 3.2 Gen 2) on top, supporting fast charging, docks, and peripherals like external GPUs.
Button Layout: The black Xbox Edition replaces one Armory Crate button with a dedicated Xbox button, likely for quick access to the Xbox Game Bar or a customized interface. The white model retains ASUS's standard layout with Armory Crate and Command Center buttons.
Profile: A thicker, bulkier design (approximately 15% thicker than the ROG Ally X, per FCC images), potentially housing a larger battery or improved cooling. Hands-on testing is needed to evaluate comfort.
Screen: No reduction in bezel size, maintaining the 7-inch display footprint. The absence of powered-on photos leaves questions about upgrades like OLED, higher resolution, or variable refresh rate (VRR), which the original Ally supported.
Cooling: Enhanced thermal design with dual fans and larger vents, based on ASUS's ROG Ally X improvements, to manage the Z2 Extreme's higher TDP.

While ergonomic enhancements and dual USB-C ports are welcome, the unchanged bezel size and lack of OLED confirmation are notable drawbacks, especially as competitors like the Steam Deck OLED and rumored Lenovo Legion Go S prioritize premium displays. Recent X discussions highlight fan disappointment over the LCD panel, with some speculating ASUS may reserve OLED for a future "ROG Ally 2 Pro" model.

Software: Windows, Xbox UI, and Optimization Challenges

Both ROG Ally 2 models run Windows 11, with the Xbox Edition featuring a customized Xbox-themed interface, likely part of Microsoft's Project Bayside UX framework. This interface aims to streamline navigation for handheld gaming, addressing Windows' clunky reputation on small screens. Key software features include:

Game Support: Full compatibility with Xbox Play Anywhere titles, Xbox Cloud Gaming (Game Pass Ultimate required), and third-party platforms like Steam, Epic Games Store, GOG, and itch.io.
Xbox Integration: The Xbox button enables quick access to Xbox services, such as Game Pass, cloud saves, or a tailored dashboard. Microsoft may integrate features like Quick Resume or Auto HDR, though these are unconfirmed.
Windows Optimization: Microsoft is reportedly working on a "Handheld Mode" for Windows 11, with a controller-friendly UI and power management tweaks, per recent reports from The Verge. This could debut with Project Kennan.
Potential AI Features: Leaks suggest integration of AMD's Ryzen AI engine (present in Z2 series chips), enabling features like AI-driven upscaling (similar to NVIDIA's DLSS) or performance optimization, akin to the MSI Claw 8 AI+.

However, Windows remains a double-edged sword. While it offers unmatched game compatibility, its interface and resource demands lag behind SteamOS's lightweight design. The Xbox-themed UI must be seamless to compete, as clunky navigation plagued earlier Windows handhelds. Moreover, Project Kennan's lack of native Xbox game support (beyond Play Anywhere titles and cloud gaming) may disappoint console fans expecting a portable Xbox Series X/S equivalent. X posts from gaming enthusiasts express skepticism about Windows' handheld readiness, citing issues like driver conflicts and battery drain in the original ROG Ally.

Battery Life: A Critical Unknown

Battery life, a key factor for handhelds, remains unaddressed in the leaks. The original ROG Ally (40Wh battery) averaged 1.5-3 hours for AAA games, while the ROG Ally X (80Wh) extended this to 2-4 hours. The ROG Ally 2's thicker chassis suggests a larger battery, potentially matching or exceeding the Ally X's capacity. The Z2 Extreme's 36W TDP could strain battery life, but the Aeirth Plus's 20W TDP promises better efficiency for the white model.

Recent industry trends emphasize battery life improvements, with competitors like the Lenovo Legion Go S rumored to feature 85Wh batteries and the Steam Deck OLED optimizing power draw via SteamOS. Microsoft's rumored Windows Handheld Mode may include power-saving profiles, but without official specs, battery performance is a wildcard. X users have voiced concerns about the Z2 Extreme's power demands, with some estimating 2-3 hours for high-end games unless ASUS implements aggressive thermal throttling.

Market Positioning: Navigating a Crowded Field

The ROG Ally 2 and Project Kennan enter a fiercely competitive handheld gaming market, facing established and emerging rivals:

Steam Deck ($399-$649): Powered by SteamOS, with a loyal user base and the Steam Deck OLED's superior 7.4-inch 90Hz OLED display. Its custom AMD APU (RDNA 2) is less powerful than the Z2 Extreme but benefits from Valve's software optimization.
Lenovo Legion Go ($699-$799): Windows-based, with an 8.8-inch 144Hz QHD+ display and detachable controllers. A rumored Legion Go S (2025) may introduce SteamOS and OLED.
MSI Claw 8 AI+ ($799+): Powered by Intel's Lunar Lake processors, with AI-driven performance tweaks and an 8-inch 120Hz display. Its recent launch sets a high bar for premium handhelds.
Nintendo Switch 2 (TBA, ~$399-$499): A hybrid console with NVIDIA's T239 chip, expected to launch in mid-2025. While not a direct competitor, its upcoming Nintendo Direct reveal could overshadow ASUS's announcement.
Ayaneo and GPD Devices ($600-$1,200): Niche handhelds with high-end specs (e.g., Ryzen 7 8840U, OLED displays), targeting enthusiasts but priced above mainstream options.

Pricing: Leaks estimate $499-$599 for the Xbox Edition, positioning it as a mid-tier option between the Steam Deck and Lenovo Legion Go. The white model is likely cheaper, around $399-$499, to rival the base Steam Deck. These prices align with the original ROG Ally's launch ($599-$699), which now sees discounts to $399-$599. Microsoft's potential subsidies for Project Kennan could lower costs, as speculated in a recent Windows Central report, but no firm details exist.

Release Timeline: FCC certifications, alongside filings in Indonesia and Korea, indicate production is underway. An announcement is expected at Computex 2025 (June 3-7), Microsoft's Build conference (May), or an Xbox Showcase (June), with a launch likely in Q3 2025. The timing, just before the Nintendo Switch 2's reveal, is strategic but risks being overshadowed if Nintendo unveils a powerful hybrid console.

Critical Analysis: Innovation, Iteration, and Risks

The ROG Ally 2 iterates on the original Ally and Ally X, offering stronger processors, more RAM, and ergonomic improvements. However, it lacks transformative features like an OLED display, slimmer bezels, or VRR, which competitors increasingly offer. The Xbox Edition's branding is a marketing coup, leveraging Microsoft's fanbase, but its reliance on Windows rather than a native Xbox OS limits its appeal as a true Xbox handheld. X posts from Xbox fans express mixed feelings, with some excited for Game Pass integration and others frustrated by the lack of Xbox Series X/S game compatibility.

Microsoft's strategy with Project Kennan is pragmatic: test Xbox-branded handhelds while refining Windows for portable gaming. It serves as a bridge to a native Xbox handheld, rumored for 2027 per Windows Central. Partnering with ASUS minimizes Microsoft's hardware risks, leveraging ROG's expertise, but the project's success hinges on software polish. Windows' historical challenges-clunky navigation, driver issues, and battery drain-must be addressed to rival SteamOS's seamless experience.

Battery life and pricing are critical unknowns. The Z2 Extreme's power demands could limit playtime, while the $499-$599 range must deliver value against discounted rivals. Microsoft's history of inconsistent hardware ventures (e.g., Surface struggles) raises skepticism about long-term commitment, as noted in recent X discussions. Conversely, ASUS's track record with the ROG Ally and Ally X inspires confidence in hardware quality.

Broader Context: The Handheld Gaming Boom

The handheld gaming market is booming, driven by technological advancements and consumer demand for portable AAA gaming. According to a 2024 Newzoo report, the global handheld gaming market is projected to reach $15 billion by 2027, with PC handhelds growing faster than consoles. The Steam Deck's success popularized the category, while Windows-based devices like the ROG Ally and Lenovo Legion Go expanded choice. Recent trends include:

Display Upgrades: OLED and high-refresh-rate screens are becoming standard, as seen in the Steam Deck OLED and Ayaneo Air 1S.
Software Innovation: SteamOS's lightweight design sets a benchmark, pushing Microsoft to optimize Windows. Valve's rumored SteamOS expansion to third-party handhelds (e.g., Lenovo Legion Go S) could challenge Windows' dominance.
AI Integration: Devices like the MSI Claw 8 AI+ use AI for performance optimization, a trend the ROG Ally 2 may follow with AMD's Ryzen AI.
Hybrid Consoles: The Nintendo Switch 2's hybrid design blurs lines between handhelds and consoles, indirectly pressuring PC handhelds to justify their price.

The ROG Ally 2 and Project Kennan arrive at a pivotal moment, as manufacturers race to balance power, portability, and affordability. Microsoft's push for Xbox-Windows synergy could reshape the market, but it must overcome Windows' usability hurdles.

Implications for the Handheld Gaming Market

For ASUS: The ROG Ally 2 cements ASUS's leadership in handheld PCs, building on the Ally's 15% market share (per 2024 IDC estimates). The Xbox partnership boosts visibility, but risks cannibalizing sales of discounted Ally and Ally X models ($399-$599 on retail sites like Best Buy).
For Microsoft: Project Kennan tests Xbox-branded handhelds while countering SteamOS's rise. Success could pave the way for a 2027 Xbox handheld, but failure risks reinforcing Windows' handheld struggles.
For Competitors: The ROG Ally 2's launch pressures Valve, Lenovo, and MSI to accelerate innovation, potentially lowering prices or introducing features like detachable controllers or SteamOS support.
For Consumers: Gamers gain diverse options in the $400-$700 range, with the Xbox Edition appealing to Game Pass users and the white model targeting budget buyers. However, battery life, software polish, and display quality will determine real-world value.

Conclusion

The ASUS ROG Ally 2 and Xbox-branded Project Kennan mark a bold step in the handheld gaming evolution, blending ASUS's hardware expertise with Microsoft's ecosystem ambitions. The black Xbox Edition, powered by the Ryzen Z2 Extreme with 64GB RAM, targets high-end gamers, while the white model's Aeirth Plus chip offers affordability. Ergonomic upgrades, dual USB-C ports, and a customized Xbox interface enhance appeal, but the LCD display, unchanged bezels, and Windows' challenges raise concerns.

Priced at an estimated $499-$599, the devices are well-positioned, but their success depends on battery life, software optimization, and differentiation from rivals like the Steam Deck, Lenovo Legion Go, and MSI Claw 8 AI+. With a reveal expected at Computex, Build, or Xbox Showcase in 2025, the ROG Ally 2 and Project Kennan could redefine portable gaming-if they deliver a seamless experience. As the handheld market heats up, these devices signal a future where power, portability, and ecosystem integration are paramount.