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Microsoft’s foray into the handheld gaming PC market, previously considered the exclusive terrain of companies like Valve, is gaining momentum with the introduction of the ROG Xbox Ally by Asus. This device represents more than just new hardware: it signals Microsoft’s growing acknowledgment of the need to optimize Windows 11 for portable, gaming-oriented devices. For many enthusiasts, however, the company’s latest efforts—particularly the Xbox PC app’s up-and-coming features—have arrived under the shadow of Valve’s entrenched SteamOS. While Microsoft’s ambitions are clear, the battle for handheld PC gamers' hearts and desktops remains fiercely contested.

A handheld gaming device displays a Windows desktop with Xbox app icon, set against a background of monitors showing Windows logos.The State of Handheld Gaming PCs: Market Forces and Frustrated Fans​

Handheld PC gaming is experiencing a renaissance, powered by ever-more-capable hardware and increasingly sophisticated, lightweight software ecosystems. Valve’s Steam Deck, running on the open-source Linux-based SteamOS, has blazed a successful trail by delivering a seamless, console-like experience that is specifically tailored to portable play. Not only has Valve championed user-centric features, but the company has also cultivated a thriving community around customization, plugin support, and rapid UI enhancements.
In stark contrast, Microsoft’s Windows 11, while ubiquitous as the default PC operating system, remains notorious among handheld gaming fans for being unwieldy and unintuitive outside of a traditional desktop environment. Navigating the OS and various third-party launchers on a touchscreen or compact controller continues to test patience, highlighting the need for a more fluid, gamer-first interface. Performance challenges, particularly in comparison to SteamOS, further underline these concerns.
As such, Microsoft’s announcement of the enhanced Xbox PC app—which promises an Aggregated Game Library pulling games from platforms like Steam, Battle.net, Epic Games Launcher, and GOG Galaxy—is as much an admission of shortcomings as it is a pitch for progress. Yet, the early beta impressions are mixed: while the convenience of a unified library is appealing, the reliance on opening third-party launchers remains, echoing similar friction points found on SteamOS but with less finesse.

Xbox PC App: Bridging the Fragmented PC Gaming Ecosystem​

If there’s a universal complaint about PC gaming, it’s the fragmentation caused by competing launchers and storefronts. Steam, Epic, Battle.net, Ubisoft Connect, and more each bring their own ecosystem, making the task of managing a sprawling game collection cumbersome. The Xbox PC app’s Aggregated Game Library aims to bring order to this chaos, detecting installations from other launchers and compiling them within Microsoft’s own app.
Yet, a critical limitation persists: launching games detected in this library still requires opening the original launcher. While the interface may become more coherent, the user experience doesn’t fundamentally change. This redundancy is not unique to Microsoft; Valve’s SteamOS also requires added non-Steam games to be run through their respective launchers, but the overall UI design and integration on Steam Deck render this inconvenience less obtrusive. Valve’s focused, game-first interface is often cited as dramatically lowering the friction of starting a gaming session, particularly on handheld devices.
Moreover, Valve’s ongoing investment in its storefront means that a majority of popular PC games are accessible through Steam itself, minimizing the need to juggle multiple clients. In practice, while the Xbox app’s aggregated library is a step forward, it doesn’t resolve the underlying pain points presented by the Windows platform in a handheld form factor.

The Elusive “Full-Screen Experience” and SteamOS’s Head Start​

Perhaps the Xbox PC app’s boldest promise is its forthcoming “full-screen experience”—a mode designed to immerse users in gaming by suppressing unnecessary background services, better allocating memory, and streamlining navigation. Microsoft’s vision here is to approximate SteamOS’s celebrated “Game Mode,” which creates a console-like environment for launching, updating, and managing games without requiring users to ever see the desktop.
However, Valve’s head start in this domain is significant. Years of iterative improvements—bolstered by active community involvement through projects like Decky Loader—have honed SteamOS into a polished and efficient experience. Plugins like Decky Lossless Scaling, which employs frame generation to smooth performance, empower users to tailor their setup far beyond what Windows 11 currently offers.
For Microsoft, matching this level of sophistication is not merely about copying features, but shifting the fundamental philosophy underpinning how Windows interacts with games and gamers. As of this writing, the Xbox PC app’s immersive mode is in its beta phase, available exclusively on specific hardware (notably the ROG Xbox Ally). Plans to roll out this functionality to other Windows handhelds extend into the following year, but the lack of a concrete timeline casts doubt on when—or even if—a truly comparable alternative to SteamOS’s Game Mode will appear.

Performance Considerations: SteamOS vs Windows 11 for Handheld Play​

One of the most important criteria for any gaming platform—especially for portable play—is performance. This encompasses not just raw frame rates, but also load times, battery efficiency, thermal management, and system responsiveness. By these metrics, Valve’s SteamOS enjoys several innate advantages. It is built specifically for gaming, leverages Linux’s lightweight architecture, and is actively optimized for the Steam Deck’s hardware.
Numerous user and media benchmarks have consistently found that, for identical hardware, SteamOS often pulls ahead of Windows 11 in gaming performance, especially for titles well-supported by Valve’s Proton compatibility layer. This is not merely perception: open-source drivers, minimized background processes, and curated kernel patches allow more system resources to be devoted to games rather than the overhead endemic to general-purpose operating systems.
Microsoft’s promise is that the full-screen experience for the Xbox PC app will finally close this gap, but as of the latest insider builds, concrete evidence of improved gaming performance is lacking. It’s a classic case of “wait and see,” and until verifiable benchmarks emerge, caution is warranted. The stakes are high: performance parity will be the minimum required to entice existing SteamOS users to consider switching, but Microsoft will need to demonstrate a compelling advantage to justify the extra friction associated with Windows 11.

The Dual-Boot Dilemma: Why Gamers Are Reluctant to Abandon Windows…Or SteamOS​

Despite the excitement surrounding the Steam Deck and portable PC gamedev in general, many users find themselves unable to fully abandon Windows 11. The reason? Game and mod compatibility. Many multiplayer titles, such as Call of Duty: Black Ops 6, employ anti-cheat systems incompatible with Linux. Additionally, certain mods and advanced utilities require Windows-exclusive dependencies, making them difficult or impossible to use on SteamOS.
This reality has led to the rise of dual-boot setups: users partition their storage, installing both SteamOS (or a derivative like Bazzite) and Windows 11, switching OS depending on what they plan to play or mod. On devices such as the Asus ROG Ally, this flexibility is a major selling point, giving gamers the best of both worlds. SteamOS is leveraged for the majority of titles, benefiting from its responsiveness and fluid UI, while Windows 11 is reserved for the small but crucial subset of anti-cheat and mod-heavy games.
For desktop users, the equation changes slightly. With more storage and greater control over device drivers, switching between operating systems is relatively painless—and sometimes the only option for those invested in both ecosystems. Microsoft’s prospective improvements to the Xbox PC app could, in theory, streamline the process for dual-booters, but this will require seamless switching, robust device detection, and flawless controller support.

Valve Expands Its Ecosystem: SteamOS Beyond the Deck​

Valve’s ambitions now stretch beyond the Steam Deck itself. Recent developments reveal that other handhelds—such as the Lenovo Legion Go S—are officially shipping with SteamOS, and Valve has signaled dedication to extending software support to non-Deck hardware. The same commitment applies to custom firmware projects like Bazzite, which offer modified SteamOS experiences for even broader compatibility and enhanced features.
This means that the window of advantage for SteamOS—originally confined to the Steam Deck—is rapidly closing. Any new Windows handheld faces not only competition from the Steam Deck but also from a variety of similarly optimized devices powered by SteamOS. For Microsoft, this broadening landscape raises the competitive stakes: it is no longer a simple two-horse race.

Community-Driven Enhancements and Their Impact​

One of Valve’s most potent advantages is its community. SteamOS, Decky Loader, and similar tools have unlocked a thriving ecosystem of plugins, themes, and performance tweaks. These aren’t mere gimmicks: they tackle common user pain points and enable advanced features, such as custom power profiles, game scanning, quick settings, and frame generation. All of these are accessible directly from a friendly, controller-based interface.
Microsoft, by contrast, operates a much more closed model. While the Windows ecosystem certainly supports modding at the application level, the operating system itself is less amenable to the kind of deep user-driven customization that Linux underlies. Until Microsoft opens up the Xbox PC app to similar extensibility—or delivers all the most common requests natively—it will struggle to match the organic innovation found in the Valve camp.

Critical Analysis: Strengths, Weaknesses, and What’s at Stake​

Microsoft’s Strengths:​

  • Game Compatibility: Windows 11 remains the gold standard for maximum game compatibility, supporting essentially every major release without the caveats that plague Linux and SteamOS with certain copy protection, DRM schemes, or anti-cheat software.
  • Broad Hardware Support: As the dominant OS, Windows enjoys the widest driver and peripheral compatibility, making it a safe default for new and custom hardware.
  • Ecosystem Integration: Seamless support for Xbox services, Game Pass, and cross-platform multiplayer is a unique draw for those invested in Microsoft’s larger ecosystem.

Microsoft’s Weaknesses and Risks:​

  • User Experience: The Windows 11 interface, while improved on tablets, is still far from ideal for controller-only navigation or small screen devices. Moving between launchers and apps remains a slog.
  • Performance: With a heavier system footprint, Windows 11 simply cannot match the gaming-centric performance of SteamOS out of the box. The iterative “full-screen experience” is promising but unproven as yet.
  • Lagging Features: Many of the features promised by the Xbox PC app and immersive mode are either not yet universally available or require specific hardware, limiting their real-world impact.
  • Win-Dependent Plugins: Plug-ins and mods for OS-level improvements are fewer and face more security hurdles than on open Linux-based systems.

Valve’s Strengths:​

  • Refined, Gamer-First UI: SteamOS has set a high standard for console-like ease of use on PCs—invisible OS, game-first navigation, rapid resume, and deep plug-in support.
  • Performance Efficiency: Linux under SteamOS is lighter, boots faster, and generally gives more of the hardware’s resources over to games.
  • Community Involvement: Rapid innovation and customization thanks to an open-source ethos and robust user modding.

Valve’s Risks:​

  • Game Compatibility Gaps: A minority—but crucial—set of competitive multiplayer and mod-heavy games still require Windows 11.
  • Hardware Support: Early SteamOS builds lagged behind on device drivers; while recent community initiatives have closed the gap, cutting-edge hardware sometimes requires extra tinkering.
  • Market Constraints: Some developers still design and optimize for Windows-first, occasionally leaving Linux ports or compatibility layers as afterthoughts.

Forecast and Recommendations for Enthusiasts​

At this juncture, it’s clear that Microsoft’s Xbox PC app signals a significant strategic shift. The company is finally attuned to the frustrations of handheld gamers, and its efforts to streamline the Windows experience for portable play are sincere. However, the pace of progress has lagged behind Valve’s relentless iteration on SteamOS. For now, the most prudent strategy for power users is to embrace a dual-boot setup, leveraging the strengths of each platform depending on the title in question.
Casual players, or those with a primary loyalty to games available on Steam, will likely find SteamOS a superior all-around experience. For those whose gaming habits depend on anti-cheat-heavy multiplayer titles, intricate mods, or niche utilities, Windows 11 remains indispensable. The arrival of the immersive Xbox PC app could ultimately tip the balance for some—but only if Microsoft delivers on performance and convenience.
The next year should provide clarity. If Microsoft can swiftly bring its full-screen Xbox experience to all Windows-based handhelds, optimize performance, and streamline the user interface, it stands a chance of leveling the playing field. Otherwise, SteamOS and its open-ecosystem descendants will continue to set the standard for modern portable PC gaming.

Final Thoughts​

The growing convergence of portable hardware and optimized software has made handheld PC gaming more accessible than ever. Microsoft’s revised Xbox PC app marks clear progress—but in the fast-moving landscape of gaming, progress alone is not enough. Only time will tell if the Windows giant can catch up to Valve’s head start and reshape the battle for the hearts and hands of portable PC gamers everywhere. For now, the best approach for enthusiastic gamers is flexibility: dual-boot, experiment, and stay tuned as the competition intensifies. The true winner will be the player who benefits from continuous innovation and choice—whatever the OS they choose to launch their next adventure.

Source: TechRadar I don't see how Microsoft's Xbox PC app will win me over – especially when I'm obsessed with SteamOS
 

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