Support us on Patreon
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.
Article taken from GamingOnLinux.com.
No matter what UI they use, they'll continue to annoy the users with ads and other crap because they already do that on the Xbox side. Add AI into this and you'll have a bunch of people running away from this device.
The Microsoft Store is nowhere near the level of Steam when it comes to games but of course, they offer other pieces of software that aren't game related. If they couldn't compete with Steam with their store then, what makes anyone think it'd be any different now?
As for Game Pass, that side of the business isn't growing as fast as they would like and they already raised their prices on it, which isn't even that attractive anymore but this what happens when they acquire Activision and Bethesda for $80 billion combined while needing some way to make back the profit for it. Even with this new handheld, why should I buy it when I could go with a Lenovo Legion Go or ASUS ROG Ally that already has Windows installed with the Game Pass software?
Xbox Cloud Gaming can be used on many devices including Steam Deck and while it's great for those that like cloud gaming, not everyone has a fast connection to take advantage of it. I don't see this as a large enough threat to Steam or Steam Deck.
Overall, unless MS can give a good reason why people should use their handheld device over the other Windows handheld devices, they're going to have a hard time standing out. Until then, Valve will continue to do the work they're doing right now with Steam, SteamOS and any other hardware they have in the pipeline.
Caldathras 7 hours ago
the biggest flaw of the Deck has always been that people that want one can't get one.To borrow from Gabe himself:
"It's a
Kimyrielle 6 hours ago
Thing is that the vast majority of gamers have zero interest in streaming and they have even less interest in switching to a store not called Steam. Keep in mind that Xbox is a thing in the console market for sure, but it's not really a big thing in gaming overall. Their leverage isn't all that big, really. And if people absolutely insist on using Windows on their handheld, they already can.
Caldathras 6 hours ago
An Xbox branded gaming handheld is still a closed ecosystem. By comparison, the Steam Deck is not.
Somehow, I just can't see M$ having the vision or the ability anymore to make overcoming the Steam Deck a success.
-------
I still believe that, at some point in the future, M$ is going to abandon the Windows O/S and just start producing a proprietary Windows desktop environment on top of a Linux base.
nebadon2025 6 hours ago
And according to the latest estimates, 50% of all sold PC handhelds already are not Steam Decks. Valve must release their SteamOS 3rd party support really soon to keep up!
there is a reason why no one ever heard about amazon gaming despite they being trying to take valve marketshare for over an decade...
microsoft failed to stop things like google, android and others from growing, hell they even lose the marketshare that skype, msn and wlm had, not to mention the joke that internet explorer have became.
but they have an stupid ammount of cash so we cant under estimate it either.
i wouldnt like to be in the posisiton of either gabe newell nor xbox ceo/microsoft ceo during this moment, playing this 4D chess.
but its fun to especulate ... what strategy would you use? what strategy do you think they will use?
(both valve and microsoft)
we cant under estimate the xbox brand, they sell a lot considering there is no real advantage in one, yet i dont think they compete for the same market as valve do.
Last edited by elmapul on 12 Mar 2025 at 7:07 pm UTC
Kimyrielle 3 hours ago
How could Microsoft already be too late? The vast majority of PC gamers don't own a Steam Deck (according to Valve's statistics, less than 1% of all Steam users). The alternative would be that there's actually not much of a market at all.
Because the other 99% still have an existing library on Steam and probably don't want to buy games again just to play them on a 3rd party handheld that's hard-locked to a proprietary store. Their target audience is pretty much existing Xbox owners that don't use Steam at all. In other words, a niche.
How to set, change and reset your SteamOS / Steam Deck desktop sudo password
How to set up Decky Loader on Steam Deck / SteamOS for easy plugins
See more from me