Valve’s Steam Deck, previously the gold standard for portable PC gaming, has become increasingly difficult to recommend following a price hike of up to $300 on May 27, 2026. With the base OLED model now starting at $789, competitors like the ASUS ROG Xbox Ally X offer better performance-per-dollar, shifting the market landscape.
The $300 Price Surge and the Component Crisis
For years, the Steam Deck was the default answer to the question which handheld should I buy
since it debuted in 2022. That changed on May 27, 2026, when Valve raised the price of its handheld lineup by as much as $300. Currently, a new 512GB OLED Steam Deck costs $789, while the 1TB model has climbed to $949, according to reporting by IGN.
Tech Insider reports that the broader industry is facing a significant memory squeeze; as demand for AI datacenters pulls DRAM and NAND flash capacity away from consumer electronics, handheld devices—which rely on laptop-grade memory and storage—are feeling the brunt of these supply chain pressures.
ASUS ROG Xbox Ally X as the New Budget Contender
With Valve’s pricing shifting upward, the value proposition for the ASUS ROG Xbox Ally has improved significantly. The standard ROG Xbox Ally, meanwhile, remains available at $599.99 at Best Buy, making it roughly $200 cheaper than the entry-level Steam Deck OLED.
Performance benchmarks suggest the price difference no longer dictates a gap in capability. As IGN noted, the standard ROG Xbox Ally scored 1834 in Time Spy, slightly edging out the Steam Deck’s 1715.
Software Friction and Battery Realities
Beyond hardware costs, long-term ownership of the Steam Deck has revealed persistent user frustrations. Many users on the r/SteamDeck subreddit report that the device frequently bleeds power while in Sleep Mode, often leaving them with an exhausted battery when they attempt to resume play.
Software performance also remains a point of contention. For those not comfortable troubleshooting Linux-based software, these inconsistencies can transform a convenient handheld into a source of technical headaches.
The Nintendo Switch 2 Alternative
For gamers prioritizing the handheld experience over raw PC power, the Nintendo Switch 2 enters the conversation at a lower price point. Retailing at $449.99—or approximately $500 when bundled with games like Mario Kart World,
Pokémon Pokopia,
or Donkey Kong Bananza
—the console offers a 7.9-inch LCD screen. While it lacks the OLED panel found on Valve’s device, it supports resolutions up to 3840 by 2160 at 60 FPS when docked, according to SlashGear.
However, the trade-off remains the ecosystem. While Nintendo maintains exclusive titles, the cost of building a library on the Switch often outpaces the initial investment in a PC-based handheld, where frequent sales can reduce the total cost of ownership over time.
Market Positioning in Late 2026
The handheld gaming market is currently a battle between three distinct philosophies: Valve’s unified software-hardware ecosystem, ASUS’s Windows-based hardware power, and Nintendo’s focus on proprietary software. With roughly 6 million units shipped across the industry between 2022 and 2024, the sector remains a niche compared to the 60-million-plus consoles moved by Sony and Microsoft per generation, yet it has become a critical proving ground for mobile chips.
For prospective buyers in July 2026, the decision has shifted from a simple preference for form factor to a calculation of which company’s supply chain costs they are willing to absorb. With the Steam Deck no longer representing a clear budget advantage, the choice rests on whether the seamless integration of SteamOS is worth a premium of $200 or more over comparable Windows-based hardware.
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