Valve’s ambitious gamble on Linux-based SteamOS is beginning to pay off, as the OS quietly erodes Windows 11’s supremacy in the gaming space. Latest data from the July 2025 Steam Hardware & Software survey shows SteamOS posting its highest growth rate yet, while Microsoft’s flagship Windows 11 experiences an incremental but worrisome decline. As significant updates loom for both SteamOS and Windows, and with Microsoft rolling out a “full-screen experience” for the Xbox PC app, the question isn’t just which operating system is more popular—it’s which is winning the hearts and hands of gamers.
Background: SteamOS and the Windows Gaming Legacy
For decades, Microsoft’s Windows operating system has stood as the de facto platform for PC gaming. With unparalleled driver support, broad software compatibility, and integration with the DirectX graphics API, Windows dominated as the go-to OS for gamers and developers alike. Even attempts from Apple and Linux to bite into that market share largely fizzled—hampered by limited native game libraries and peripheral support.Enter SteamOS. Launched by Valve in response to both the increasing versatility of PC gaming hardware and a desire for a more open, hardware-agnostic ecosystem, SteamOS is a Linux-based operating system designed specifically for gaming. Initially powering the ill-fated Steam Machines in 2015, SteamOS roared back to life as the foundation for the Steam Deck, Valve’s wildly successful handheld gaming PC, released in 2022.
Today’s market is witnessing a slow, but telling, migration: PC gamers are beginning to see SteamOS not just as a niche experiment, but as a viable, even preferable, alternative to Windows.
The Numbers: SteamOS on the Rise
According to July 2025’s Steam Hardware & Software survey, SteamOS—under the broader “Linux” umbrella—gained a notable 0.32% in market share, bringing total Linux use on Steam to 2.89%. While that share might appear minor compared to Windows’ dominance, the context is key. Steam boasts a massive userbase of roughly 132 million users; this means nearly four million active users are now gaming on Linux, the vast majority via SteamOS or direct derivatives.Meanwhile, Windows 11 saw its user share dip by 0.44%, a reversal that many in the industry see as an indicator of momentum shifting in Valve’s direction. Some analysts are connecting the dots directly to the increased adoption of handheld gaming devices, led by the Steam Deck and newcomers like the ASUS ROG Ally and Lenovo Legion Go—devices increasingly friendly to Linux-based operating systems.
Why SteamOS Appeals to Gamers
Superior Performance and Customization
One of SteamOS’s major draws is its performance efficiency. Built specifically for gaming, SteamOS strips away the bloat of a typical desktop OS, providing an environment where resources flow directly to games. Community tools like Decky Loader extend performance capabilities even further with additions like Framegen and Lossless Scaling, giving gamers granular control over frame rates, upscaling, and responsiveness.Seamless UI and Handheld Experience
With gaming hardware factoring ever more into the PC landscape, UI design is crucial. SteamOS’s “game mode” delivers an uncluttered, controller-first interface, contrasting with Windows 11’s desktop-centric design. The result: handheld devices running SteamOS offer instant-on gaming, intuitive navigation, and deep integration with the Steam ecosystem—all with significantly less fuss.Open Source Flexibility
SteamOS’s foundation on Linux opens the door to a level of customization Windows simply can’t match. Users can tweak, theme, and automate the OS to their tastes. Third-party distributions like Bazzite offer forked enhancements, and the growing ecosystem of plugins continues expanding what’s possible—without Microsoft’s licensing or update restrictions.Windows 11 Responds: Xbox PC App “Full-Screen Experience”
Despite the recent dip, Microsoft is far from out of the game. In response to the Steam Deck phenomenon, the company is poised to launch its new “full-screen experience” within the Xbox PC app. This overhaul is designed to appeal to handheld gamers and desktop users alike, promising a clutter-free interface optimized for controller navigation—a transparent effort to close the UX gap with SteamOS.The update will debut initially on the ASUS ROG Ally, Microsoft’s strategic hardware partner in the handheld space. The revamped interface aims to unify Xbox Game Pass, cloud gaming, local titles, and social features under one enter-to-play surface, all within a single button’s reach.
Critical Analysis: Does SteamOS Outpace Windows 11 for Gaming?
Accessibility and User Experience
SteamOS genuinely excels in accessibility for both seasoned enthusiasts and newcomers. The setup process for the Steam Deck and similar devices is painless, with no need to wrestle with drivers, updates, or third-party launchers. By comparison, even with improvements, Windows 11 can feel cumbersome—especially for those seeking to game via a handheld without a mouse and keyboard.However, Windows 11 remains untouchable in sheer compatibility. Contemporary AAA games, VR software, and certain proprietary titles like those under the Epic Games Store will often run more reliably—or exclusively—on Windows. For streamers and modders, Windows’s mature software suite still offers unmatched advantages.
Game Performance
Performance claims around SteamOS and Windows spark heated debate. For many titles, particularly those optimized for Linux or running through Valve’s Proton compatibility layer, frame rates and load times match or exceed those on Windows 11. Decky Loader’s open-source plugins allow further optimization, and the Linux kernel’s efficient use of system resources results in less background drag.Still, not every game is created equal. Certain anti-cheat systems, middleware, or engines simply don’t cooperate well with Proton or Linux, meaning occasional headaches for SteamOS adopters. Performance parity isn’t universal—though ongoing updates to Proton and a strong community support mitigate the downside over time.
Feature Set and Ecosystem
SteamOS’s tight integration with the Steam ecosystem works wonderfully for players fully bought-in to Valve’s library and community. Achievements, Remote Play, Family Sharing, and cloud saves are all seamlessly presented.Yet, for gamers with diverse libraries—think Ubisoft Connect, EA Play, or third-party indie platforms—Windows remains universally compatible. Microsoft’s Game Pass offers hundreds of games for a low monthly fee, a feature still largely absent in native form on Linux.
The Impact of Handheld PC Gaming
The growth of SteamOS can’t be separated from the surging popularity of handheld PCs. Valve’s Steam Deck didn’t just create a new device—it reinvigorated the Linux gaming conversation. Its success opened the door for competitors and led many gamers to experience a Linux-based platform, often for the first time.Today’s market features a rapidly evolving array of handheld devices:
- Valve Steam Deck: The trendsetter, running SteamOS and optimized for the form factor.
- ASUS ROG Ally: Shipping with Windows 11 but being courted for Microsoft’s portable “full-screen” Xbox UX.
- Lenovo Legion Go: Another Windows-powered entry, but with a mod-friendly BIOS that encourages Linux experimentation.
Valve and Microsoft: Competing Commitments
Valve’s Roadmap
Valve has made clear its commitment to broadening SteamOS compatibility, both by supporting more handheld devices and making installation on desktop hardware less daunting. The company continues refining Proton—its compatibility layer for running Windows games on Linux—and it’s investing in community features, such as plugin support and rapid-issue patching.Valve’s open-source approach encourages a vibrant, passionate community—a significant force multiplier in ongoing OS refinement.
Microsoft’s Strategy
Not to be outmaneuvered, Microsoft promises rapid iteration of its own. The enhanced Xbox PC app, deeper Xbox Game Pass integration, and a focus on controller-first navigation are direct answers to the SteamOS user experience.Moreover, Microsoft’s partnerships with manufacturers and commitment to world-class driver support mean Windows will continue powering new hardware, especially in the enthusiast segment.
Challenges and Potential Risks
While SteamOS’s momentum is real, its trajectory isn’t without hurdles. Many game developers still treat Linux support as an afterthought, if at all. As more anti-cheat and DRM solutions update for Proton, that barrier will erode—but it may take years to reach true parity.There’s also a risk inherent in distribution fragmentation. As forks like Bazzite gain popularity, discrepancies in support and user experience could slow or complicate adoption. Valve controls the mainline SteamOS updates but can’t guarantee uniform support across all custom distributions.
Finally, there’s the ever-present possibility of Microsoft pivoting rapidly. Should Microsoft choose to open-source parts of its ecosystem, enhance Linux support in DirectX, or otherwise disrupt with aggressive pricing, Valve’s advantage could narrow quickly.
Looking Ahead: The Future of Gaming Operating Systems
The landscape for gaming operating systems has never been so dynamic. SteamOS has successfully proven Linux is not only viable but desirable for a wide swath of gamers, particularly those prioritizing handheld experience and open customization.Windows 11, for all its inertia, is showing signs of adaptation. The “full-screen experience” and hardware partnerships are clear responses to what Microsoft sees as a meaningful threat. Whether these changes will be enough to staunch the flow of users to SteamOS remains to be seen.
One clear trend: the fate of handheld gaming devices and their operating systems will heavily shape the direction of PC gaming at large. Valve and Microsoft are both betting that the future is more portable, responsive, and tailored to the gamer—not just the game.
Conclusion
SteamOS’s methodical growth—bolstered by community-driven innovation and a focus on frictionless handheld gaming—has marked a surprising, yet substantial, challenge to Windows 11’s long-standing reign. Microsoft’s upcoming “full-screen experience” may slow but is unlikely to reverse the trend as gamers increasingly prioritize flexibility, performance, and usability over legacy ecosystems.The battleground for gaming operating systems is in full swing. For millions of gamers, the choice between SteamOS and Windows 11 is no longer a question of which works—it’s a question of which works best for them, on their terms, and on their chosen hardware. As Linux’s foothold grows with every monthly survey tick, it’s clear that the future of gaming is not just being played—it’s being rewritten.
Source: TechRadar I told you gamers, Valve's SteamOS is the real deal – Steam hardware survey indicates gradual user shift away from Windows 11 for gaming