this post was submitted on 21 Nov 2025
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The original was posted on /r/pcmasterrace by /u/Majestic-Bowler-1701 on 2025-11-20 20:47:17+00:00.


Originally, XFE rollout on devices other than ROG Xbox Ally was planned for 2026 but MS decided to release it a few months earlier. Probably as a response to the reveal of Steam Machine.

Tomorrow, the update will be available to all existing PC handhelds with Windows. Additionally the XFE will also be available to desktop PC for users who sign up to the programs: Windows Insider and Xbox Insider (source: TheVerge).

XFE is a lightweight shell that replaces the standard desktop (Explorer) to limit memory usage and reduce number of background processes. It also support gamepad and show games installed from all stores. When the system is booted into this shell you will have additional 2 GB memory and 30% fewer background processes. That additional memory is available because the system doesn’t start the desktop as some other default apps and services. Those features still exist in the system but new Xbox shell don't load them

You need to remember that when you start some apps in background those apps will use memory. They can also trigger system to load some additional features that was skipped by XFE. So by default all games launchers will be disabled in auto-start and XFE will start them only when you click a game installed from such service.

  • games from GOG will start without any launcher at all.
  • games from MS Store (Game Pass) have launcher already loaded into memory (XFE)
  • games from Steam, Epic, Ubisoft etc. will start additional launcher when you click a link to a game. Some launchers can waste up to 1 GB

How to optimize handheld for max performance?

  • Always think about available memory. Your handheld have only 16 GB divided between system memory and video memory. Any app launched in background will waste resources
  • Disable all game launchers in auto-start
  • Don't launch overlays
  • Disable Steam Big Picture and use classic Steam interface which use less memory. Classic interface don't support gamepad but you will never click anything in Steam app because you will launch games from XFE
  • Disable Xbox button app in Steam to make sure that Steam will never launch Steam Big Picture by accident.
  • Disable ads in Steam. By default, Steam launches a small window showing ads every time you start the launcher. This window not only wastes memory but also will “intercept focus” when you close a game. So instead of returning to XFE, you will return to a window with ads that can’t be closed using a gamepad. You don't want that. Find option "Special Offers" in Steam settings and turn it off
  • When you close game remember to also close game launcher. That launcher will stay hidden minimized to system tray and will waste resources

I will test it tomorrow on my ROG Ally Z1E (2023) to check how much memory is available in XFE and update this post with some data: memory used, number of background processes, impact of each launcher etc.

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