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Here’s a summary of what Microsoft shared about how the new Xbox Ally handhelds run a lightweight, bloat-free version of Windows 11, based on the Neowin article:

Key Points:​

  • Specially Optimized Windows 11 Home
  • The version of Windows 11 running on the new Xbox Ally handhelds is significantly optimized for this form factor.
  • Bloat-Free and Streamlined
  • According to Jason Beaumont (VP of experiences at Xbox), much of the traditional Windows desktop “stuff” isn’t loaded on the Ally. This includes:
  • Desktop wallpaper
  • Taskbar
  • Processes designed for productivity that aren’t needed for gaming
  • Xbox OS Expertise Applied to Windows
  • Microsoft brought engineers with decades of Xbox OS experience to work directly on the Windows codebase, specifically to “reimagine” Windows for a handheld console-like experience.
  • Reduced Notifications and Pop-Ups
  • Roanne Sones (CVP of Gaming Devices) stated that many notifications and pop-ups have been minimized for a less distracting gaming experience.
  • Significant Memory Optimizations
  • Brianna Potvin (Principal Software Engineering Lead) explained that switching off unnecessary Windows components results in "about 2GB of memory going back to the games" when running in the full-screen experience.
  • Improved Idle Power Draw
  • When the device is asleep in full-screen mode, it uses only one-third of the idle power draw compared to the regular Windows desktop experience.
  • Forward-Looking
  • These optimizations are not superficial; Microsoft says it will keep improving the experience based on player feedback.

In Summary​

The Xbox Ally’s version of Windows 11 Home is a deeply customized environment that boots into a full-screen, game-first experience with major background processes, desktop elements, notifications, and popups stripped away. This leads to better performance for games, more available RAM, and improved battery life in standby—key advantages for a handheld gaming device.
Source: Neowin: Microsoft explains how Xbox Ally runs a lightweight bloat-free Windows 11
If you’d like, I can explain more about how these changes compare to typical Windows 11 installations or relate to other handheld gaming PCs!

Source: Neowin Microsoft explains how Xbox Ally runs a lightweight bloat-free Windows 11