Microsoft is now in a handheld gaming PC race

Valve plans to support SteamOS on Asus' ROG Ally, which may challenge Microsoft's dominance in the handheld gaming PC market.

: Valve confirmed it's working on supporting SteamOS for rivals like Asus' ROG Ally, hinting at competition with Microsoft's Windows on handheld gaming PCs. With nearly 20 million handheld gaming devices sold last year and numbers expected to rise, the stakes are high. Microsoft needs to improve Windows for handhelds to stay relevant.

Valve has announced its intention to support SteamOS on competitor devices like Asus' ROG Ally, which may lead to Steam Deck-like devices using Valve's OS over Windows. This move could intensify competition with Microsoft, whose Windows OS currently powers most handheld gaming devices but often offers a subpar experience.

Nearly 20 million handheld gaming devices were sold globally last year, with projections suggesting this number will grow to over 29 million by 2028. As Microsoft has been slow to enhance Windows for handheld devices, there is a clear opportunity for SteamOS to gain a larger market share, especially with devices like Nintendo’s Switch 2 and Sony’s portable PlayStation on the horizon.

While companies like Lenovo and Asus have created custom interfaces to make Windows more handheld-friendly, significant improvements must come from Microsoft itself. With a growing market that could someday overtake traditional game consoles among younger gamers, Microsoft's delay might allow SteamOS to become a formidable competitor.

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