Steam’s latest Hardware & Software Survey paints a clear picture: as of June 2025, Windows still rules the PC gaming world. Nearly 96% of gamers on Valve’s ubiquitous platform—Steam—are running a Windows-based system, and a striking 60% have already moved to Windows 11. These numbers underscore the continuing dominance of Microsoft in a sector that, despite the steady drumbeat of technological change and growing competition, still leans heavily on its decades-long ecosystem of software, compatibility, and gamer familiarity.
Yet beneath these seemingly unassailable statistics, a new challenger is steadily gaining ground. Valve’s SteamOS—the custom, gaming-focused Linux-based operating system first introduced on the innovative Steam Deck handheld—has been quietly expanding its reach. Now pre-installed on additional devices like Lenovo’s Legion Go S, its growing presence has sparked talk, rumors, and not a little anxiety in Redmond. What does this mean for the future of PC gaming? Can Microsoft’s deeply entrenched Windows platform hold back the momentum building behind SteamOS, or is the long-predicted shakeup of the PC gaming hierarchy finally coming to pass?
Windows’ Gaming Dominance: Strength in Numbers, but for How Long?
Let’s start with what Steam’s own data tells us. For June 2025, Windows accounts for an overwhelming 95.6% of Steam users—desktop, laptop, and handheld combined. Of these, 59.8% have adopted Windows 11, even though broader consumer and enterprise markets have seen much slower migration rates from Windows 10. It’s a testament to the unique demands of the PC gaming market: gamers prize performance, up-to-date drivers, and support for the latest gaming technologies, all of which are more readily available on Windows 11.This dominance is not just a legacy artifact of inertia. Much of PC gaming’s heart still beats strongest on Windows, thanks to:
- Unmatched Game Compatibility: The sheer breadth of games designed primarily for DirectX and built for Windows is staggering. While Proton and Wine projects have made impressive strides translating Windows games for Linux, out-of-the-box compatibility still heavily favors Microsoft’s OS.
- Hardware Driver Support: From NVIDIA and AMD graphics cards to advanced controller peripherals, driver release cycles and support typically prioritize Windows, offering superior performance and features on launch day.
- Game Store Ecosystem: Beyond Steam, other major platforms—Epic Games Store, GOG Galaxy, Battle.net, and even Microsoft’s own Xbox app—are deeply tied into Windows’ APIs and system architecture.
But no empire is unchallenged forever.
The Rise of SteamOS: Faster, Freer, and the Lure of Handhelds
Valve’s SteamOS began as an ambitious side project—a Linux-based OS optimized for gaming, initially meant to power a new breed of living room “Steam Machines.” The first wave fizzled out, hamstrung by inconsistent hardware and a software ecosystem that lagged far behind Windows in compatibility and user experience.But then came the Steam Deck. Released in 2022, Valve’s handheld PC success redefined portable gaming. At its heart was SteamOS 3.x, a deeply optimized and gamer-centric Linux desktop that, thanks to Steam’s Proton compatibility layer, could run a shockingly large percentage of Windows-only games almost seamlessly.
Valve’s hard work bore fruit. SteamOS quickly cultivated a cult following and provided a viable alternative for players turned off by the resource overhead, forced updates, and increasing complexity of the Windows PC experience.
Notably, according to several industry benchmarks, games can run notably faster on SteamOS compared to Windows—at least when hardware is identical and adequately supported. This performance edge has given SteamOS a compelling headline, particularly on devices with limited power envelopes, such as handhelds and mini-PCs.
Valve has since expanded SteamOS’s reach, preinstalling it on other handhelds like the Lenovo Legion Go S. There is persistent chatter about an incoming “Steam Box”: a TV-connected, console-style PC running the same lightweight OS. If such a device hits mainstream price points and can deliver on the promise of easy, reliable gaming with console-like simplicity, it could, for the first time in decades, truly chip away at Windows’ hegemony in the living room and beyond.
The Allure: What Makes SteamOS Appealing?
Several factors converge to make SteamOS a legitimate threat to Microsoft’s dominance:- Open Ecosystem: Unlike Windows, SteamOS is free, open-source, and hasn’t historically bundled the intrusive telemetry or advertising bloat that has frustrated some Windows users in recent years.
- Optimized for Gaming: The OS is built around Steam’s Big Picture UI; it boots fast, updates little besides the essential, and minimizes background processes that might sap gaming performance.
- Controller-Friendly: With console-like navigation and controller support out of the box, SteamOS is at home on a couch or in a backpack—just as friendly to the TV as to a dedicated gaming desk.
- The Proton Factor: Valve’s Proton layer, a compatibility tool built atop Wine, allows thousands of Windows-native Steam games to run on Linux, rapidly closing the historic “software gap.”
- Freedom from Windows Constraints: Many gamers weary of Windows’ forced reboots for updates, system “feature packs,” and changing UI paradigms have found SteamOS’s focused, minimal approach refreshing.
Potential Game-Changer: The Steam Box Dream
Rumors have intensified about a proper “Steam Box”: a living-room gaming PC running SteamOS out-of-the-box, positioned as a direct rival to Xbox and PlayStation. This dream—long discussed but never truly realized—has always hit compatibility and ease-of-use snags. But with Steam Deck’s proven interface and massive expansion of Proton’s compatibility, the technical hurdles are lower than ever.Should Valve (or a partner like Lenovo or ASUS) release such a console at scale and a competitive price, it could ignite a new round of platform wars, particularly appealing to gamers frustrated by the costs or baggage of traditional Windows installations.
Microsoft Strikes Back: Windows Gaming Edition and the Xbox-PC Hybrid
Microsoft, for its part, is not ignoring these signals. The company’s “Windows as the number one platform for gaming” mantra is evolving from slogan to strategy. In a recent announcement partnered with AMD, Xbox President Sarah Bond highlighted a new, gaming-focused version of Windows. Key elements include:- Reduced OS Overhead: Stripped-down versions of Windows boot far more quickly, prioritize game-related processes, and minimize background resource use.
- Controller-First UI: Borrowing design philosophy from Xbox’s dashboard, the new interface is built for TVs, handhelds, and hybrid devices—reducing friction for non-mouse-keyboard setups.
- Plug-and-Play Experience: Microsoft aims to offer a seamless transition between Xbox consoles and PC, making game installs, achievements, and multiplayer more tightly integrated.
Points of Strength: Why Windows Still Sets the Pace
While the rise of SteamOS—and by extension, Linux gaming—poses a meaningful threat, several powerful realities still favor Windows:- Backward Compatibility: Over twenty years of DirectX development, middleware support, and legacy APIs mean Windows runs not just the latest games, but a huge archive of older, modded, and niche titles.
- Peripheral Ecosystem: Gaming mice, keyboards, VR headsets, flight sticks, and driving wheels continue to offer their full potential first (and sometimes exclusively) on Windows.
- Game Launcher Consolidation: While Proton has made strides, not every title—especially those reliant on anti-cheat, DRM, or third-party launchers—works seamlessly outside Windows.
- Productivity and Customization: SteamOS is built for gaming. Windows still dominates for those looking to double up their gaming rig as a general purpose work, creative, or communications machine.
The Proton Conundrum: Compatibility Miracles and Limitations
A key element in any threat assessment of SteamOS is Proton, Valve’s translation layer that allows many Windows-only games to run on Linux. Proton has made remarkable progress: thousands of titles, from indie darlings to AAA blockbusters, now function “out of the box” on Steam Deck and other SteamOS devices. Crowd-sourced tools like ProtonDB catalog improvements and compatibility tips for nearly every major game.However, compatibility is not quite perfection. Some multiplayer games, particularly those with strict anti-cheat solutions (such as Easy Anti-Cheat or BattlEye) may still refuse to load—or may require convoluted user workarounds. Middleware dependencies, launcher quirks, and software DRM can all create headaches for the less tech-savvy.
Moreover, while Proton’s overhead is surprisingly small, in rare cases games may run slightly slower than on native Windows. For an average user, especially one new to open-source operating systems, Windows continues to offer a lower-friction and more consistently smooth experience.
The Handheld Revolution: Changing the PC Gaming Landscape
If there’s one trend that exemplifies the seismic shifts in gaming, it’s the explosion of handheld PC devices. From the Steam Deck to the Lenovo Legion Go and ASUS ROG Ally, gamers are increasingly interested in powerful, portable, and couch-friendly machines that bridge the divide between console and PC.SteamOS shines here. Its clean, controller-first interface, fast boot times, and streamlined software are ideal on hardware where every watt and second of battery life counts. Valve’s reputation for regular updates, community feedback, and transparent communication gives these handhelds an added layer of trust.
But Microsoft is learning quickly. The new breed of gaming-optimized Windows builds is explicitly targeting these form factors, aiming to combine Windows’ strengths (compatibility, support) with the flexibility and focus of its newest rival.
Business Realities: Ecosystem Lock-In and Revenue Streams
It’s important to look beyond technical strengths and consider business incentives. Microsoft’s Windows platform is a revenue juggernaut not just from license sales, but from its integration into the Game Pass ecosystem, its cut of Xbox and PC marketplace transactions, and its influence in partnerships with game studios and hardware manufacturers.Valve, while a steward of SteamOS, has different motives. Its profit engine is built on Steam store sales—more installations of Steam’s platform, regardless of OS, serve its interests. But making Linux-based gaming more popular also serves as a bulwark against disruptive changes from Microsoft, ensuring Valve isn’t beholden to Redmond’s every decision.
Consumer Sentiment: Is the Tide Actually Turning?
Anecdotal evidence and social listening reveal an interesting split. Long-time PC gamers, modders, and tinkerers were quick to embrace Steam Deck, and many appreciate the “no-nonsense” ethos of SteamOS. For users burnt out on Windows’s twice-a-year feature packs, telemetry expansion, and shifting interface priorities, SteamOS offers a breath of fresh air.But for the average gamer, inertia remains a powerful force. Windows’s reliability, familiarity, and “it just works” reputation still resonate, especially among those for whom gaming is a leisure pursuit, not a lifestyle experiment.
Industry analysts point out that for all the excitement, non-Windows operating systems on Steam represent only a sliver of users—typically under 5%, and largely clustered around enthusiasts and handheld owners. Until a major publisher, a killer app, or a revolutionary Steam Box tips the balance, Microsoft has breathing room.
Risks, Caveats, and Future Unknowns
Still, there are warning signs Redmond cannot ignore:- Hardware Flexibility Favors Linux: New PC gaming form factors (handhelds, set-top boxes, tiny desktops) are often built around custom Linux images for speed and stability.
- Regulatory Scrutiny: Global pressure on monopolistic practices could open doors for alternative OSes and fragment Microsoft’s long-held control over the gaming sector.
- Developer Support Momentum: As more devs ship Proton-compliant or native Linux builds, the “compatibility gap” shrinks. This is especially true for indie and mid-tier studios.
- Cloud Gaming Parity: With the rise of streaming and cloud-based services, the power of a heavyweight local OS may continue to diminish, reducing Windows’ inherent advantage in driver and hardware support.
- User Transition Reluctance: For most, gaming is a plug-and-play experience. Installing a new OS, troubleshooting edge cases, and juggling multiple update channels remain barriers outside tech-literate circles.
- Ecosystem Fragmentation: Should the market become flooded with dozens of SteamOS variants or poorly maintained forks, user trust could erode.
- Monetization Questions: While Valve’s hardware plays are generally well-received, it lacks the infrastructure of Microsoft to build a vertically integrated, multi-device, subscription-driven platform.
Outlook: Time on Microsoft’s Side, But Change Is Inevitable
In the short to medium term, the numbers don’t lie: Windows remains the titan of PC gaming, with nearly 96% share on Steam. Microsoft’s swift response—announcing gaming-focused Windows builds, pursuing Xbox-PC hybrid devices, and deepening partnerships with key silicon and device makers—reflect its willingness to adapt.Yet, for the first time in years, the prospect of a genuinely competitive, open, and performant alternative in SteamOS is real. The fate of the “Steam Box” and the appetite for more handhelds will shape the next decade of gaming.
Valve can push boundaries—delivering performance, freedom, and innovation—but it must solve compatibility and polish remaining rough edges if it hopes to sway the mainstream. For its part, Microsoft must keep Windows gaming lean, approachable, and responsive to a diverse range of play styles and devices.
Change is not yet here, but it’s coming. The only real certainty is that for gamers, a heated platform race promises more choices, better experiences, and the kind of innovation only fierce competition can inspire.
Key Takeaways
- Steam’s June 2025 survey confirms Windows’ near-total dominance in PC gaming, with 95.6% of users on Microsoft platforms and 59.8% on Windows 11.
- SteamOS is finding unexpected momentum through handhelds like the Steam Deck and could soon power living-room consoles.
- Microsoft is proactively countering, with “Windows Gaming Edition” and Xbox-PC hybrids promising a seamless, controller-friendly experience.
- Gamers benefit from the emerging competition, which encourages innovation, optimization, and consumer choice.
- SteamOS is real, functional, and fast—but compatibility, anti-cheat support, and user familiarity still heavily favor Windows.
- As the landscape shifts, both giants and newcomers will be forced to court and compete for the hearts—and hardware—of gamers everywhere.
Source: TweakTown Steam data shows Microsoft has time to fend off the looming threat of SteamOS