Massive new Xbox Ally X update brings major changes to the Steam Deck's handheld rival

A new Xbox Ally X update has just landed, and it brings with it a host of significant new features for the Windows gaming handheld. A raft of improvements for docked usage, better game library support, automatic upscaling via Auto Super Resolution, and much more mean this new update should make the handheld easier to use in a wide range of situations.

While the Steam Deck OLED is still our go-to recommendation for the best gaming handheld overall, my Xbox Ally X review proved it's the best Windows option, and this update should ensure it stays top of the pile.

Leading the charge for the new update is a range of docked play improvements. These include the Xbox Ally X now automatically switching gameplay to the connected display, turning off the display on the handheld, ensuring no system resources are wasted on keeping the other screen running.

Displays that support features such as Auto Low Latency Mode and Variable Refresh Rate will now have these automatically enabled. Plus, external display settings can now be adjusted using the Game Bar overlay, so there's no need to exit a game to change these.

Controller pairing has also been improved, although this might potentially prove a controversial option. When docked with a controller connected, the handheld's controls will be disabled.

Perhaps the biggest change here is somewhat buried in the announcement, but this update will turn the left thumbstick into a cursor, making "it possible to navigate experiences that don't otherwise support controller input, like web browsers, music streaming apps and third-party PC gaming storefronts." This functionality is also rolling out to all versions of Windows 11, possibly as part of Microsoft's Windows 11 K2 initiative.

As for Auto Super Resolution (Auto SR), this is a Windows 11 feature available on some CoPilot+ PCs that applies a DLSS/FSR-like upscaling option to all games. With Auto SR on the Xbox Ally X, the handheld will now automatically apply the upscaling so that games run at a base resolution of 720p but are output to external displays at 1440p.

Other extras listed on the release notes include improved support for the Xbox Wireless Headset and Bluetooth LE Audio, with super wideband stereo voice now available as well. Microsoft has also tweaked the haptics to provide "a fuller, more refined haptic experience that better matches what you expect across Xbox devices."

When it comes to game launching, the Xbox app can now have custom game links added, so that you can easily start games from disparate game libraries or custom installs, letting you access your entire collection from one controller-friendly interface.

It's quite the raft of improvements. While many of them will be subtle for at-a-glance use of the handheld, they should bring some meaningful quality-of-life gains across the board.