Microsoft's new handheld will comes in two flavours, the ROG Xbox Ally and ROG Xbox Ally X.
"Whether you're at home or on the go, your favorite games should follow you," said Xbox head of gaming devices Roanne Sones.
"Both handhelds allow players to play natively, via the cloud, or remotely with their Xbox console in another room."
The two versions both share a 7 inch screen with 1080p resolution.
The base version comes with 16GB memory and 512GB storage, while the "X" version has 24GB memory and double the storage.
The more powerful version of the handheld also has a bigger battery and a more powerful processor.
In both cases, Xbox will be hoping to convince players that it offers something out of the box that its rivals don't - Microsoft's operating system.
"Because these handhelds run Windows, you have access to games you can't get elsewhere, so you can enjoy the full freedom and versatility of PC gaming," said Ms Sones.
In other words, gamers can leave the Xbox app and launch other gaming platforms - such as Steam and EA Play - through the device.
But all that capability comes at a cost when it comes to weight.
At 670g and 715g respectively, the base and X versions of the Xbox Ally may be heavier than handheld gamers are used to - with Nintendo's new Switch 2 weighing a fair bit less at 534g.
And there remains one big unanswered question - the price.
Microsoft decided not to reveal how much its new handheld will cost, but it goes without saying the more powerful X version will also be more expensive.
The Switch 2, which has a similar screen, retails at £395 in the UK, while the Steam Deck costs between £349 and £569 depending on the specs.