For the first time in history, Microsoft Corp MSFT is launching a branded handheld gaming console, taking on Nintendo ADR’s NTDOY Switch 2, which debuted on June 5.Here are the early details.What Happened: Best known for several other business segments, Microsoft is also the owner of a video gaming division that includes the Xbox console and video game hits from Activision Blizzard.The company recently unveiled the ROG Xbox Ally handheld gaming console and the premium ROG Xbox Ally X.The handhelds will offer cross-device gameplay &#34;anytime, anywhere, on any device,&#34; according to the company.Microsoft said the new handhelds will help usher in a new era for the gaming sector, where gamers can bring their games with them and, with the new console, play natively via the cloud or remotely with an Xbox console in another room.&#34;The ROG Xbox Ally puts player choice at the center of the experience.&#34;Why It's Important: The announcement from Microsoft comes days after Nintendo released the Switch 2, its latest handheld gaming console.Nintendo has dominated the handheld market for years with its Game Boy, Nintendo DS and Nintendo Switch consoles.Sony Group Corp SONY, which releases the PlayStation gaming console, briefly entered the handheld markets and had the Sony PS Vita, which sold over 15 million units.One of the items that could quickly differentiate the Microsoft and Nintendo handhelds is the chips inside.The ROG Xbox Ally X will include the AMD Ryzen AI Z2 Extreme processor, while the ROG Xbox Ally will include the AMD Ryzen Z2 processor, both from Advanced Micro Devices Inc AMD. For comparison, the Nintendo Switch 2 has a chip from NVIDIA Corp NVDA, a company considered a leader in AI chips and GPUs.Another difference could be the partnership between Microsoft and Roblox Corp RBLX. The partnership sees Roblox making its game playable natively for the first time ever and optimized for handhelds.The new Microsoft handheld will be available in time for the holidays in 2025, giving Nintendo a significant head start but competing during one of the busiest gaming console shopping times.Microsoft did not announce pricing for its new consoles, saying it would provide information for preorders and pricing soon. The Nintendo Switch 2 has a retail price of $450.Microsoft and Nintendo have different built-in fan bases and consoles from the two also have different exclusive games. The battle between the two companies could heat up in 2025 with Microsoft looks to take market share for physical consoles and handheld consoles.MSFT Price Action: Microsoft stock closed Monday up 0.50% to $472.75, with shares hitting a new all-time high of $473.43 during the intraday session. Microsoft stock is up 13% year-to-date in 2025.<ul><li>Jensen Huang Says Nintendo Switch 2 Has AI Processors To Enhance Gameplay: ‘Unlike Anything We’ve Built Before’</li></ul>Photo: Shutterstock

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Microsoft is launching its first handheld gaming console, the ROG Xbox Ally, to compete with Nintendo's recently released Switch 2. The new console promises cross-device gameplay and features AMD processors, while Nintendo's console uses NVIDIA chips. Microsoft aims to enter the handheld market, traditionally dominated by Nintendo, with a release planned for the 2025 holiday season. Pricing details are yet to be announced, but the competition is expected to intensify as both companies target gamers during peak shopping times.

- Microsoft Corp is launching its first branded handheld gaming console, the ROG Xbox Ally, to compete with Nintendo's recently released Switch 2.  
- The new handhelds will feature cross-device gameplay and utilize AMD processors, differentiating them from Nintendo's use of NVIDIA chips.  
- Set for a holiday 2025 release, Microsoft aims to capture market share in the handheld gaming sector, intensifying competition with Nintendo.

Microsoft Vs. Nintendo Handheld Gaming Console Includes Nvidia Vs. AMD Battle: Which One Will Come Out On Top?