The company says the launch of its new Asus handheld consoles is part of a broader push to give players more hardware choices - from high-end consoles to portable PC gaming systems - while continuing work on the next generation of Xbox consoles.

In an interview with Variety, Xbox president Sarah Bond said that the collaboration with Asus allowed Microsoft to “innovate faster and in a more creative way” than building the devices alone.

She said: “We took everything we knew about what it took to make a controller, what it actually feels like for things to work in a variety of hand sizes, what it feels like to play for three hours, and worked on the ergonomics of the device to make it super, super comfortable.”

Priced at $599.99 for the Ally and $999.99 for the more powerful Ally X, the devices quickly sold out in multiple regions after pre-orders opened in September.

Bond said: “The reaction was overwhelming demand for the device.

“We sold out on the Xbox Store. We sold really quickly at a number of other places around the world.”

Bond emphasized that Xbox’s strategy is about “meeting players where they are,” offering a range of hardware for both casual and dedicated gamers.

She explained: “We want to make sure that people have a choice. We want to make sure there’s an option for the power players who want the latest innovations … and for the casual gamers who want PC gaming on the go.”

Crucially, Bond confirmed that Microsoft remains fully invested in its console roadmap following rumors the next generation of Xbox would be the last.

She said: “We are 100 per cent looking at making things in the future. We have our next-gen hardware in development … and a partnership with AMD around it.”