Why Microsoft should be terrified of Valve's SteamOS

SteamOS is spreading beyond Valve's hardware. That could threaten Microsoft's hold on PC gaming...or even Windows' hold on the PC market.

- MICHAEL CRIDER

Ten years ago PC gamers were eagerly awaiting Steam Machines (fave.co/4apsCLR), console-style Linux boxes built from the ground up to play PC games. They flopped, due in no small part to Steam operator Valve's lack of experience working with hardware partners. But in 2025, both Valve and its home-built gaming operating system are different beasts. And Microsoft should be afraid of them.

THE STEAM DECK DOMINATES PC GAMING

The big story in PC gaming for the last three years has been the Steam Deck. This low-power, portable, relatively inexpensive machine is clearly something the market has been waiting for, exciting gamers and energizing PC makers to pump out imitators, like the Asus ROG Ally and the Lenovo Legion Go.

But all of these machines lack a crucial component, despite copying the Steam Deck's hardware to a greater or lesser degree. They rely on Windows, as do almost all consumer PCs not made by Apple. And Windows just isn't a good experience (fave.co/4hfo3WK) in this form factor.

That's why Lenovo turned to Valve for its second-gen Legion Go S—or perhaps more precisely, the Legion Go S Powered By SteamOS (its full and cumbersome title). It's the first handheld PC officially powered by Valve's Linux-based operating system (fave.co/4jkwTnV), but probably not the last.

Lenovo is also making new Windows-based versions of the same hardware, but we've already heard that Asus is working on a similar Steam-powered handheld, and Valve itself will let you download and install builds of SteamOS later in 2025 (fave.co/4gWeVXo). Some tech heads aren't even waiting, and are already building their own quasi-SteamOS-powered PCs (fave.co/42hO97h).