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PayPalWith Microsoft pushing to improve Windows on handhelds, and reportedly working with a specific partner on an Xbox-branded gaming handheld, Valve should be watching closely with their Linux plans for Steam Deck and SteamOS.
This news comes across two reports. There's Windows Central that noted how there's an actual Xbox-branded gaming handheld that Microsoft are working on with a third-party hardware vendor. And then also The Verge reporting on Microsoft's wider plans to improve Windows on handhelds.
This could end up being a big problem for Valve, potentially derailing their efforts on the Steam Deck and Linux as a whole. You may think I'm being perhaps a bit alarmist here but vendor lock-in is a serious thing. It makes me think back to the time where Valve's Gabe Newell called Windows 8 a "catastrophe" and how Valve had embraced Linux as a "hedging strategy" against more Windows lock-in.
I hope Valve are watching closely on this, because you can be guaranteed that Microsoft will be continuing to try and push more people towards the Microsoft Store, Game Pass and Xbox Cloud Gaming. Naturally they will be, Microsoft will want any hardware that's first-party or third-party to be properly worth their time and money investments into them. As they continue to refine the Windows handheld experience, potentially making it look more Xbox-console like, then of course it will be tied more to the Windows Store too. And if done well, that's less people looking to Steam. Not everything lasts forever.
With Valve preparing a public Beta of SteamOS, and all their work that has gone into Proton to get Windows games running on Linux (that I noted in my three years of Steam Deck anniversary article), it's clear that Valve are still on the right track not to be tied to one operating system and having their own software and hardware together. So, with that in mind, I sure do hope they're continuing to work on a Steam Deck 2 and eventually a proper more powerful living room console — all powered by Linux.
What are your thoughts? Leave a comment and let me know.
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Once upon a time... Valve will release a SteamOS port to that new xbox portable and everone will move to it. They will be happy ever after or something.
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dziadulewicz 6 hours ago
I think Microsoft is late on this. AND people have an increasingly bad impression on the Ways of Windows. Desktop or where ever. User is not respected in the world of MS. Then again respect for Valve and their generosity from users..... 
4 Likes, Who?
hardpenguin 6 hours ago
I would be worried if it was an actual handheld Xbox, even if it was just basically Series S.
But for handheld Windows, I am not worried that much.
But for handheld Windows, I am not worried that much.
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I wonder at what point in development they're gonna realize "Gee, we really made a bloated, garbage OS, huh?" and scrap the whole project.
2 Likes, Who?
Microsoft does what they always do... being late to the party. And then throwing so much money at it that others can't compete anymore. They don't invent themselves, they let invent and then they buy it or copy it using their huge money montains.
Microsoft is still doing a great job priming people since school to use Windows. Yet there are more people realizing the path Microsoft has chosing with each iteration of their OS is not what they want.
E.g. in our little gaming group I've been the only one playing my games on Linux whenever possible for years. Now we are four people playing on Linux. And I didn't even have to convince them. Microsoft did that for me
Nevertheless, I do see some danger Will Robinson here. Microsoft can just burry things with their money. They can sit things out.
I've now finally installed bazzite on my ROG Ally, and though it's great, it's not as smooth and pleasant to use as Steam OS is. Now I can understand why Valve needs time to improve Steam OS to work really smooth on other devices.
Microsoft is still doing a great job priming people since school to use Windows. Yet there are more people realizing the path Microsoft has chosing with each iteration of their OS is not what they want.
E.g. in our little gaming group I've been the only one playing my games on Linux whenever possible for years. Now we are four people playing on Linux. And I didn't even have to convince them. Microsoft did that for me
Nevertheless, I do see some danger Will Robinson here. Microsoft can just burry things with their money. They can sit things out.
I've now finally installed bazzite on my ROG Ally, and though it's great, it's not as smooth and pleasant to use as Steam OS is. Now I can understand why Valve needs time to improve Steam OS to work really smooth on other devices.
2 Likes, Who?
I wonder at what point in development they're gonna realize "Gee, we really made a bloated, garbage OS, huh?" and scrap the whole project.Scrap Windows? We can hope.
2 Likes, Who?
One thing I see a lot of people online hyping up about the next Xbox products being more PC-box than consoles, just like all these deck-like handhelds, is that they're somehow convinced Microsoft will still allow people to use Steam inside their new gaming OS, and I fail to see the benefit for Microsoft in that. Why invest so much money into a new platform if you're still going to allow users to use the competition? Hardware sales stopped being a point of revenue years ago, it's all about the services now, so why would Microsoft allow the competing service to run on their platform?
2 Likes, Who?
This definitely reads as alarmist. Remember that Linux is once again less than 2% of the total userbase on Steam, and yet Valve made a Linux Handheld and continue to invest money into making Linux gaming better. Microsoft making a better Windows handheld experience isn't going to detract from what Valve has already done, or will continue to do, because they aren't trying to win a console war. They don't NEED to, everyone who's PC gaming already has a Steam library. "You can't play your Steam games without additional effort" is friction that's going to make adoption more difficult.
Besides, a partner-launched Windows handheld isn't going to be able to compete with the Deck on price. And it won't until an actual Xbox handheld is launched by Microsoft themselves, where they can hedge the price on getting more games bought on their platform, just like an Xbox.
Besides, a partner-launched Windows handheld isn't going to be able to compete with the Deck on price. And it won't until an actual Xbox handheld is launched by Microsoft themselves, where they can hedge the price on getting more games bought on their platform, just like an Xbox.
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We will have to wait and see what they deliver. It could be a good competitor, but being Microsoft I have doubts they will make a product with the attractive and openness of the Deck. On the other hand, Game Pass has a huge drag, so yeah, could hit the Steam Deck hard.
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pleasereadthemanual 5 hours ago
Without Steam, this thing is dead in the water. Steam is what makes Windows handhelds work at all.
Microsoft could make a better product by making it easy to access games on GOG, Epic, Steam, and the Microsoft Store without a convoluted interface like normal Windows or SteamOS. Will they?
Microsoft could make a better product by making it easy to access games on GOG, Epic, Steam, and the Microsoft Store without a convoluted interface like normal Windows or SteamOS. Will they?
1 Likes, Who?
The_Real_Bitterman 4 hours ago
Maybe this will mean Valve will finally improve the controller interaction with their steam store. Because there is nothing more unsatisfying than using the Steam Community, Workshop or Store on Deck.
Either the action bar at the bottom starts to flash rapidly, the controller is jumping towards items not visible on screen or randomly selecting things in the background which are blurred out like the power menu, or a controller input get repeated for a few seconds without the user pressing anything (especially after waking the Deck from sleep) and so many little annoying issues.
They definitely need a proper native Steam Deck UI for the store and not just the website forced into the big picture mode ...
As of now Valve does not need to improve anything because the competition is even worse on hand-held, UI wise.
Either the action bar at the bottom starts to flash rapidly, the controller is jumping towards items not visible on screen or randomly selecting things in the background which are blurred out like the power menu, or a controller input get repeated for a few seconds without the user pressing anything (especially after waking the Deck from sleep) and so many little annoying issues.
They definitely need a proper native Steam Deck UI for the store and not just the website forced into the big picture mode ...
As of now Valve does not need to improve anything because the competition is even worse on hand-held, UI wise.
1 Likes, Who?
I think Microsoft is late on this. AND people have an increasingly bad impression on the Ways of Windows. Desktop or where ever. User is not respected in the world of MS. Then again respect for Valve and their generosity from users.....
Since Windows Millennium yes.
The trend I see with friends is the drive to find alternatives to the Google/Microsoft ecosystem (ok they are tech savvy but not all are familiar with Linux as a daily OS).
The recent example with Skype closing its door is one of a long list (It's fate was already sealed in 2014 it just took a long time to die).
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Microsoft has more buckets of cash than Valve, has a long-standing manufacturing and logistics pipeline, and has Xbox brand recognition outside of PC gaming. They've bought almost all of the big publishers so they can simply demand that those games are playable on their device rather than having to rely on 0.7% of a slice of the gaming market to nudge developers in the right direction.
But Valve don't have any option but to stay the course. They aren't going to submit to Microsoft even if they haven't yet become a Linux-first company. The biggest strategic move they can make is to improve their own logistics pipeline to allow worldwide distribution - the biggest flaw of the Deck has always been that people that want one can't get one.
But Valve don't have any option but to stay the course. They aren't going to submit to Microsoft even if they haven't yet become a Linux-first company. The biggest strategic move they can make is to improve their own logistics pipeline to allow worldwide distribution - the biggest flaw of the Deck has always been that people that want one can't get one.
4 Likes, Who?
Microsoft's strategy has indeed changed, They are pushing the "you will own nothing" subscription model and thus no longer care about hardware lock in as they want you to have access to their platform wherever you are at any time of the day.
From my understanding it would appear that MS has put out a contract to an OEM (Asus) to develop a handheld for them for release in the near future. This would be a similar approach to what valve did with steam machines. They are also reported to be developing their own handheld for release at a future date alongside a new console.
Its likely that this handheld will be a open platform but just more optimised and locked down compared to windows desktop. Valve has just too big a stranglehold on the market for MS to disrupt it with a single handheld. I would expect MS new handheld to have access via App or side load for the likes of Steam, EA, Ubisoft etc to be accessible on said device and in turn Microsoft will give access to Gamepass and Microsoft store on Steam and other platforms.
Sure I could be totally wrong on this but I am confident that this will be the situation from MS moving forward judging by their current behaviour with opening up their games catalogue.
As Linux users and gamers we need to be vigilant because MS will take the opportunity to abuse their position if given the chance but either way we will find out soon enough.
NOTE. Just my opinion and nothing should be taken as facts.
From my understanding it would appear that MS has put out a contract to an OEM (Asus) to develop a handheld for them for release in the near future. This would be a similar approach to what valve did with steam machines. They are also reported to be developing their own handheld for release at a future date alongside a new console.
Its likely that this handheld will be a open platform but just more optimised and locked down compared to windows desktop. Valve has just too big a stranglehold on the market for MS to disrupt it with a single handheld. I would expect MS new handheld to have access via App or side load for the likes of Steam, EA, Ubisoft etc to be accessible on said device and in turn Microsoft will give access to Gamepass and Microsoft store on Steam and other platforms.
Sure I could be totally wrong on this but I am confident that this will be the situation from MS moving forward judging by their current behaviour with opening up their games catalogue.
As Linux users and gamers we need to be vigilant because MS will take the opportunity to abuse their position if given the chance but either way we will find out soon enough.
NOTE. Just my opinion and nothing should be taken as facts.
1 Likes, Who?
Mohandevir 4 hours ago
Some sources are wondering why there are no dev kits of these, in the wilds. Some say it's because it's similar to the actual xbox series S, others think that MS is focusing on cloud gaming. Another cloud gaming handheld?
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I consider this individual effort as doomed to fail, but Microsoft powerful enough to be a serious threat after this failure.
I think it will at first be incompatible with anything except the Xbox and windows Gamestore.
That will fail and they will open up.
After that it will become interesting.
For pc style gaming Microsoft will need Steam.
Will Valve not actively fight running steam on a young platform with no currently existing market share and an active attempt at undermining their position.
I don't know and for what price.
I think it will at first be incompatible with anything except the Xbox and windows Gamestore.
That will fail and they will open up.
After that it will become interesting.
For pc style gaming Microsoft will need Steam.
Will Valve not actively fight running steam on a young platform with no currently existing market share and an active attempt at undermining their position.
I don't know and for what price.
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I would really be surprised if they actually made windows usable for sane people on a handheld.
On the other hand, we know inertia and Microsoft is everything but a stranger to shady and despicable business practices - so i really do hope that you are just alarmist and not prophetic...
On the other hand, we know inertia and Microsoft is everything but a stranger to shady and despicable business practices - so i really do hope that you are just alarmist and not prophetic...
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A Windows handheld is not something to worry about much, given the amount of trouble Windows has on gaming handhelds. There is only so much you can improve without doing a major re-write of parts of the OS, which is not gonna happen.
An XBox handheld on the other hand is worrying indeed, as it won't have any of the Windows problems, and also won't have the anti-cheat problem. However, the openness of Steam Deck will continue to be a major selling point against an XBox handheld, which is going to be as closed as a device can possibly be.
An XBox handheld on the other hand is worrying indeed, as it won't have any of the Windows problems, and also won't have the anti-cheat problem. However, the openness of Steam Deck will continue to be a major selling point against an XBox handheld, which is going to be as closed as a device can possibly be.
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Linux_Rocks 3 hours ago
Seriously, replacement shells for Windows were a thing back in the day with TabWorks, etc. How the fuck has no one just released one for Windows 11 and gaming handhelds already to beat Microsoft to it on their own OS? (http://en.wikipedia.org/wiki/TabWorks)
Last edited by Linux_Rocks on 12 Mar 2025 at 2:52 pm UTC
Last edited by Linux_Rocks on 12 Mar 2025 at 2:52 pm UTC
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Intellectually, it seems clear to me this is a major threat. Microsoft have the money, they have the motivation, they have the track record, it seems like seriously bad news. But somehow in my gut I'm finding it hard to take it seriously. I feel like Microsoft kind of lost their predatory mojo years ago and just don't really have the stuff any more to pull off a major disruptive move.
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