I got my hands on the latest next-gen handheld.

Intel has been through a rough patch lately, facing layoffs, setbacks, and a reputation hit from failing CPUs that have driven desktop gamers toward AMD. With Apple and Qualcomm edging Intel out of key laptop markets and a gaming graphics card going missing, things looked bleak. However, the Panther Lake laptop chip, built on Intel’s crucial 18A process, has shown impressive results, and a handheld variant could position Intel as a frontrunner in portable gaming chips.

Recently, I spent a couple of hours testing the MSI Claw 8 EX AI Plus handheld, powered by Intel’s new Arc G3 Extreme. The experience left me convinced that next-gen handhelds have finally arrived, delivering the performance and battery life we’ve been craving, albeit at a steep price.

Intel boasts that the Arc G3 Extreme can match the performance of AMD’s top chip while consuming just half the power. The MSI Claw operates at a mere 17 watts, compared to the 35 watts needed by the Xbox Ally X with AMD’s Z2 Extreme. Alternatively, it can achieve an average of 42 percent faster performance at the same 35 watts, making demanding titles like Battlefield 6, Baldur’s Gate 3, Cyberpunk 2077, Red Dead Redemption 2, Returnal, and Forza Horizon 6 playable at 1080p with high settings and 60fps. This is achieved through 2x upscaling, resulting in a render resolution of 960×540, which is how I typically handle demanding handheld games.

Intel claims the Arc G3 Extreme is so efficient that you can game at 1080p on low settings using just 12 watts, significantly outperforming the AMD chip in this regard. In the least demanding games, it can draw as little as 4 watts, potentially offering nearly 12 hours of battery life on a single charge.

This kind of advancement in handheld gaming PCs is unprecedented. The Steam Deck set a high standard in 2022 with its unbeatable price-to-efficiency ratio. By the time the $549 Steam Deck OLED arrived in 2023, it could run modern AAA games at low settings for about two hours and lighter games for up to eight. Windows-based competitors could deliver smoother gameplay or higher settings, but they consumed much more power. This trend has persisted across various handhelds, regardless of whether they were equipped with AMD Z1 Extreme, Z2 Extreme, 7840U, 8840U, HX370, or the AMD “Strix Halo” AI Max Plus 395.

With power-hungry chips limiting performance, manufacturers have sought alternative improvements. The Asus ROG Ally X doubled the battery capacity to 80 watt-hours, allowing for around three hours of medium gameplay or about nine hours of lighter gaming in my tests. The Xbox Ally introduced larger, gamepad-style grips to enhance comfort for heavier handhelds.

The MSI Claw 8 EX AI Plus, featuring Intel’s new chip, seems to combine all the best elements: an 80-watt hour battery, ergonomic grips, power, efficiency, drift-resistant Hall effect joysticks, and impressively smooth gameplay on an 8-inch 120Hz VRR display.

During my demo, I was eager to try Forza Horizon 6. Beforehand, I played the first hour of the game on the Xbox Ally X, the Steam Deck, and the previous-gen Intel Lunar Lake handheld. At a native 1920 x 1200 resolution with medium settings, the Lunar Lake MSI Claw managed around 40-45 frames per second. The Xbox Ally X delivered about 50fps at its lower 1080p resolution, while the Steam Deck struggled to maintain playability at its native 800p resolution, often resulting in a choppy experience.

In contrast, the new MSI Claw with the Arc G3 Extreme achieved 60-73 fps in Forza Horizon 6 at 1200p resolution, without utilizing Intel’s frame generation technology. This performance aligns well with Intel’s claims, alleviating some of my skepticism. The Claw consumed just 43 watts of total system power, translating to approximately 1.8 hours of runtime on its 80 watt-hour battery. The Xbox Ally X, in its 35W turbo mode, draws closer to 50 watts, yielding around 1.6 hours of peak performance.

Intel’s chip may offer even smoother gameplay if you’re okay with frame generation. Battlefield 6 ran buttery smooth at 110–140fps with 4X frame generation, though I’d need a mouse, keyboard, and larger screen to compete effectively in multiplayer. This was achieved with the chip set to a 25W TDP and a total power draw of just 38W, suggesting I could enjoy two full hours of gameplay on the 80Wh battery. After my two-hour session, which included some photography, the Claw still had 29 percent battery remaining.

The new Claw is also the most comfortable handheld I’ve used, featuring excellent weight distribution and grippy textured grips. It feels lighter than expected, and I no longer worry about it slipping from my hands during intense gaming sessions. However, I have some reservations about the controls—the 8-way D-pad is quite clicky, the bumpers feel a bit hollow, and the sticks and triggers have a slightly cheap feel reminiscent of the previous Claw. Still, everything is more than adequate, even in the engineering sample I tested.

If you’re wondering whether this leap in handheld technology matters if the price is out of reach, you’re not alone. Just last week, I noted that the golden age of handheld gaming might be over due to rising costs, and it seems this handheld will come at a premium: $1,699.99. That’s even higher than the $1,500 price point initially suggested.

One perspective is that this price is simply too high—gaming shouldn’t be a luxury! On the flip side, compared to the $1,000 Xbox Ally X, this represents a 70 percent price increase for an average of 42 percent more performance, which isn’t exactly appealing.

Regardless, the launch is set for June 23rd, and it appears handhelds are making a comeback. I wouldn’t be surprised if my next device features Intel Inside—assuming the current RAM crisis comes to an end.