United Kingdom, Nov. 16 -- ASUS has said demand for the Xbox Ally X has "exceeded expectations," with the company now working urgently with component suppliers to increase production after early supply shortages.

The company has said its high-end handheld - created in partnership with Microsoft as part of the ROG gaming lineup - has been met with stronger-than-anticipated enthusiasm since its launch last month.

During its latest investor meeting, ASUS revealed that the Ally range is expected to generate between $96 million and $160 million in revenue this quarter, settling toward $130-160 million in subsequent quarters.

Executives described the market response as "extremely positive," noting especially strong appetite for the premium c...