The ROG Xbox Ally X, already one of the most expensive handheld gaming devices on the market, has just become even harder to justify for Australian buyers. Its recommended retail price has climbed from AU$1,599 to AU$1,799—a AU$200 increase that outpaces typical console price adjustments. For context, the PlayStation 5 and Xbox Series X have historically seen modest AU$30 to AU$50 hikes, not near this magnitude.

This isn’t an isolated case. The global semiconductor and memory shortage, exacerbated by the AI boom, is forcing manufacturers to reassess pricing across the board. Valve has delayed its Steam Machine and Steam Frame projects, Nintendo is reportedly reconsidering the Switch 2’s pricing, and Sony’s PS6 launch may face further delays. Even the Steam Deck OLED, once a flagship, has seen supply constraints in some regions.

The Ally X isn’t the only Xbox handheld affected—its sibling, the base ROG Xbox Ally, remains at AU$999, though it’s often available for AU$100 less from retailers like Amazon. The disparity highlights how the Ally X’s premium positioning is now under pressure from broader market forces.

Why the price hike? The answer lies in the same challenges plaguing the industry: AI-driven demand for GPUs and memory has created a bottleneck. Phison, a key SSD controller manufacturer, has warned that consumer electronics firms may face bankruptcy or exit product lines by the end of 2026 if shortages persist. For a device like the Ally X, which relies on high-end components, the cost of securing those parts has become prohibitive.

ROG Xbox Ally X now AU$200 more expensive in Australia—what it means for buyers

Who still needs the Ally X? The device targets power users seeking raw performance in a portable form factor—think 4K output, a custom AMD APU, and up to 1TB of storage. But with the base model offering nearly identical specs at a fraction of the cost, the Ally X now faces a tougher value proposition. Buyers who need the extra power—such as developers testing games or streamers requiring higher resolutions—may still justify the expense, but casual gamers will likely reconsider.

Alternatives and tradeoffs

  • Base ROG Xbox Ally: AU$999 (often discounted to AU$899). Nearly identical specs but lacks the premium branding and some cooling optimizations.
  • Steam Deck OLED: AU$949 (if available). Better software ecosystem but less raw power and no 4K output.
  • ASUS ROG Ally (original): AU$699. Older but still capable, though limited to 1080p and less storage.
  • Custom PC handhelds: DIY options can match or exceed specs but require technical expertise and upfront costs.

For those who already own the Ally X, the price hike is a non-issue. But for prospective buyers, the AU$200 increase adds another layer of uncertainty in an already volatile market. Whether this is a temporary adjustment or a sign of things to come remains unclear—though given the broader industry trends, further changes aren’t out of the question.