Indian Startup ARC Builds X1 Handheld Gaming System With Its Own OwlOS

Indian gaming-hardware startup ARC is moving closer to commercialising the ARC X1, a home-grown handheld gaming system designed around ARM computing, Qualcomm technology and the company’s own gaming-focused operating system.

The Bengaluru-based startup has raised ₹10.5 crore in pre-seed funding to complete hardware engineering, product validation, manufacturing preparation and supply-chain development for the X1.

The funding round, announced on September 8, was led by Chimera VC and MIXI Global Investments, with Meta APAC Director Dhruv Vohra participating in his personal capacity.

Rather than simply developing another mobile-gaming accessory, ARC is attempting to build an integrated hardware-and-software gaming platform aimed particularly at Indian consumers.

ARC X1 Chooses ARM Instead of Conventional PC Hardware

One of the most important engineering decisions behind the X1 is ARC’s decision to build the handheld around an ARM architecture rather than the x86 architecture used by many portable gaming PCs.

ARC says the decision was driven by a need to balance performance, energy efficiency, thermal management, battery life and affordability.

The company has said the X1 is being developed using Qualcomm technology, while ARC has also been working with Qualcomm during product development.

ARM processors dominate smartphones and increasingly appear in laptops and other computing systems because they can deliver high performance while consuming comparatively little power.

For handheld gaming, that trade-off becomes especially important because increased power consumption translates directly into larger batteries, more heat and shorter gaming sessions.

OwlOS Is ARC’s Own Gaming Operating System

The other central element of the X1 is OwlOS, ARC’s proprietary operating system.

ARC says OwlOS is built on the Android Open Source Project, or AOSP, but has been designed specifically around handheld gaming rather than conventional smartphone use.

The operating system is intended to provide a controller-focused interface and bring different gaming environments into a unified platform.

ARC says the device is being designed to support native Android games, cloud gaming and PC-game compatibility, potentially giving users access to a much broader game catalogue than a conventional Android handheld.

The company has already demonstrated some of the potential of the platform. ARC recently said that Hades II was running at 60 frames per second on the X1, although complete benchmark data and final hardware specifications have not yet been publicly released.

Hardware and Software Being Developed Together

ARC’s approach is notable because most Indian gaming companies operate primarily in software, esports or mobile gaming.

The X1 requires the company to deal simultaneously with industrial design, processors, displays, thermal engineering, battery systems, controls, operating-system development and software compatibility.

That makes the project considerably more complex than developing a conventional gaming application.

ARC is also testing the device with gamers before commercial release. A pre-launch beta-testing programme announced in July allows selected users to test prototypes and provide feedback on ergonomics, performance and software behaviour.

The company says more than 50,000 people have joined the X1 waitlist, giving ARC a sizeable pool of potential beta testers and early customers before launch.

Funding Will Take X1 Toward Manufacturing

The new ₹10.5-crore financing is therefore important because ARC has already moved beyond the initial concept stage.

The company plans to use the capital for hardware engineering, validation, manufacturing readiness, supply-chain development and further expansion of OwlOS and its gaming software platform.

It will also support team expansion, strategic partnerships and preparation for commercial launch.

Hardware startups typically face a more difficult path to commercialisation than software companies because prototypes must eventually be redesigned for reliable mass production.

Components must be sourced at scale, tooling must be prepared, manufacturing yields controlled and after-sales support established before a consumer device can be launched commercially.

ARC’s latest funding is largely intended to bridge precisely this gap.

Building a Handheld Specifically for the Indian Market

Portable gaming systems such as the Steam Deck, ASUS ROG Ally and Lenovo Legion Go have demonstrated growing international demand for handheld gaming PCs.

However, imported gaming hardware can remain relatively expensive in India.

ARC believes there is room for a device designed around the purchasing power and usage patterns of Indian gamers rather than simply importing a global product.

Its use of ARM architecture could potentially lower power consumption and hardware costs, although the X1’s final pricing, processor configuration, RAM, storage, display specifications and battery capacity have not yet been formally announced.

Those details will ultimately determine how competitive the system is against established international handhelds.

An Unusual Indian Consumer-Hardware Startup

The broader significance of ARC X1 lies in the type of company being built.

India has developed a large software and gaming ecosystem, but relatively few startups attempt to design complete consumer-computing products combining custom hardware, operating systems and application compatibility layers.

ARC is attempting all three with the X1.

The September funding round therefore represents more than financing for another gaming startup. It gives ARC capital to move an Indian-designed handheld gaming platform through the difficult transition from prototype development to manufacturing readiness.

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