Yesterday we finally got to tell you what we think about Asus ROG Ally (hint: it's very positive). It's basically a true handheld gaming PC running Windows 11, which means no hassle or compromises as with Steam Deck (which runs on Linux).
Microsoft has been somewhat involved in the production to help it run Windows as smooth as possible, and the unit also includes three months of Game Pass Ultimate. This has led to the Xbox team now referring to Asus ROG Ally as a "Game Pass Portable" on Xbox Wire.
A reasonable guess is that Microsoft will continue to work with Asus to improve portable gaming and market the unit to Xbox gamers, as they are now really helping out hyping it.