Asus has released a new promotional video that is seemingly teasing a new handheld gaming system. In the teaser, which you can check out below, a robot getting ready to have some upgrades installed.Things seem to go wrong (or right), however, because an ROG controller along with an ROG Ally also fall into the upgrade booth along with the robot. While we dont get a clear view of the result, since it is shrouded in quite a bit of fog, we are able to see a display flanked by asymmetrically-placed analogue sticks, as well as the ABXY face buttons shown on the display for a second.While the video is quite obviously hinting towards a new iteration of the Asus ROG Ally, Microsoft also seems to have taken notice of the video. In a post on social media platform X, the official Xbox account responded to the video with the side-eye monkey meme. While nothing has been confirmed so far, it is likely that the new ROG Ally will also be running on Windows, and Microsoft may have even helped develop the system.A report from back in March indicated that Microsoft has been working with another company for a third-party Xbox-based handheld gaming system. While neither Asus nor Microsoft have confirmed anything so far, the interaction X might indicate that the next ROG handheld system might be the first shot at an Xbox handheld that everyone has been waiting for.According to the reports, the Xbox-based gaming system is being designed with Xbox design sensibilities. This also means the inclusion of a dedicated Xbox Guide button, as well as support for the Windows Store and Game Pass in some way.Microsoft has not been shy about its aspirations to tap into the handheld gaming market following the success of products like the Linux-based Steam Deck and the Windows-based Asus ROG Ally. Back in January, Microsofts vice president of Next Generation Jason Ronald spoke about the company wanting to bridge the gap between Xbox and Windows for a handheld gaming system.I would say its bringing the best of Xbox and Windows together, because we have spent the last 20 years building a world-class operating system, but its really locked to the console, Ronald said. What were doing is were really focused on how do we bring those experiences for both players and developers to the broader Windows ecosystem.For Microsoft, this also means streamlining the experience by making Windows more intuitive to use on a handheld system. Ronald believes that this means designing the system to be closer to a console than a gaming PC.Were focused on really simplifying that and making it much more like a console experience, he explained. Our goal is to put the player and their library at the center of the experience and not all the [Windows] work that you have to do today.As for Microsoft itself, the company is rumoured to be working on its own handheld gaming system internally. These rumours indicate that Microsoft is looking at 2027 as its launch window. What this means for the lifecycle of its Xbox Series X/S consoles, however, is currently unknown.pic.twitter.com/ONZpeEmNka Xbox (@Xbox) March 31, 2025