Two "ROG Xbox Ally" models made in a partnership with Taiwan-based ASUS will be available by the year-end holiday season, Xbox president Sarah Bond said during an online event showcasing games heading for the platform.

"The Xbox Ally is an Xbox you can hold in your hands, bringing together the power of Xbox and the freedom of Windows," Bond said.

"On this Xbox, you can play games across your entire library, including all the Windows PC game stores from Xbox and Battle.net to Steam, GOG (Good Old Games platform) and Ubisoft Connect."

The peek at Xbox Ally came just days after the release of Nintendo's Switch 2, the handheld console that could score record early sales for the Japanese "Super Mario" creator.

The Nintendo device, which features a bigger screen and more processing power, is an upgrade to the Switch that became a global phenomenon with hit games such as "Animal Crossing."

Microsoft promised to disclose pricing and release date details for Xbox Ally in the coming months.

Both Xbox handhelds appeared similar to Microsoft console controllers in terms of buttons, toggles and grips but looked elongated to provide room for center screens.

"When you power on your Xbox Ally, you'll boot directly into the Xbox full screen experience, a new feature optimized specifically for handheld gaming," Microsoft said in a release.

"The Xbox Ally and Xbox Ally X are perfect for players looking to take an approachable gaming experience with you during travels -- whether it's between airports, or between the comfiest chairs in the living room."