Nintendo's next-generation handheld console, the Switch 2, is set to debut on June 5, with pre-orders already well underway (albeit with unpredictable availability across the board).
Priced at $449, or $499 if you opt for the Mario Kart bundle, Nintendo's latest handheld console boasts a 7.9-inch LCD screen at 1080p with HDR and a variable refresh rate (VRR) of up to 120 Hz.
Factor in its 4K-capable dock and a slew of popular third party titles like the entirety of the Final Fantasy 7 Remake trilogy, Cyberpunk 2077, and the upcoming Borderlands 4 and you have a handheld suited to building on the success of the original Switch, which sold over 150 million units since its release in March 2017.
However, while anticipation and excitement build for Nintendo's latest hybrid console offering, a recent leak highlights that the Switch 2 will have to tackle a hurdle that the original never had to: serious competition.
And that competition seems to have Xbox's backing.
The ROG Ally 2 revealed
A slew of handheld gaming PCs from the likes of Lenovo, MSI, and more already unlock impressive gaming on the go experiences, with the Steam Deck still standing tall as the most accessible, console-like option of them all.
However, it's the Asus ROG Ally's successor that might pose the biggest threat of all to the Nintendo Switch 2.
Several recent leaks suggest that the rumored Z2 Extreme-equipped handheld could be nearing an official release.
As spotted by 91mobiles, a listing for the device, dubbed "Asus ROG Ally 2," has appeared on the Indonesian SDPPI Postel site, and an FCC listing that would suggest a pending Indonesian and North American release.
The filing, and images shared by X user @94G8LA, suggest that Asus' next-gen handheld will come in at least two models, a black SKU sporting AMD's Z2 Extreme APU, and a white SKU, interestingly opting for AMD's Aerith Plus APU. — a successor to the chipset used by the Steam Deck.
This particular APU was previously denied to be powering a potential Steam Deck 2 by Valve after being spotted in a shipping manifest in March.
It's likely that this model could run the Steam Deck's SteamOS platform, which is continually expanding to better suit third party devices — similar to the way Lenovo has approached OS flexibility with the Legion Go S.
However, the Z2 Extreme model appears certain be a Windows handheld. That said, it may be a very special kind of Windows handheld, as it has something others dont: a dedicated Xbox button.
This collaboration between Xbox and Asus has been long rumored, and often cited as Project Kennan. But it's not just a branding deal, it may be Xbox soft-launching its way into the handheld market, something strongly alluded to following the next-gen ROG Ally's first teaser trailer, released on April 1, 2025.
And that's quite a shake-up for Nintendo's handheld dominance.
ROG Ally 2: Nintendo's biggest competition to date?
If Nintendo's biggest challenge with the original Switch was proving that there was still life left in handhelds circa 2017, the challenge in 2025 is proving that its success wasn't simply down to there being very few other options available to match the Switch's performance, form factor, and playability.
The original Switch was practically unopposed. Sony had all-but given up on handhelds, Xbox seemingly had no interest in portable hardware, and the rational thought of a handheld gaming PC was still several years away — with Alienware's Project UFO being showcased during CES 2020, two years before Valve began shipping out the Steam Deck.
All that has changed.
While there's no denying that the popularity of the Switch will transition much of its momentum to the Switch 2, as a console, Nintendo risks falling victim to the same old problem home consoles have faced — PCs just do it better.
Not only do handheld gaming PCs like the ROG Ally 2 suggest more powerful devicees, they are more open devices, allowing for operating system flexibility, emulation, vastly expanded game libraries, wider access to various services, better customization, richer personalization.
And now, potentially more tightly integrated access to Xbox's secret weapons: Game Pass and a Windows platform that may be gently evolving to better suit this form factor.
What's next
Nintendo's ecosystem of beloved franchises and brand loyalty has proven to survive just about everything, JoyCon stick drift included.
The company's undereliance on cutting edge hardware over the last few generations only reinforces the notion that its fans care more about Zelda, Mario, and Pokémon than they do ray-tracing, resolutions, or frame generation.
In that light, the Switch 2 is better prepared for the competition than ever. It's bringing the kitchen sink of software and hardware features with it when it releases in June.
However, devices like the ROG Ally 2, are going to be immensely tempting as an alternative, and if a release of this Xbox-branded handheld gaming PC is as imminent as FCC filings may suggest, Nintendo may be heading into its first proper console-war (of sorts) in decades.
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