Windows vs. SteamOS: The New Console Battle for Your Living Room

Microsoft's Strategic Shift to Windows for Xbox Consoles

Microsoft is making bold moves in the gaming industry by signaling that future Xbox consoles will run on Windows, a shift that could redefine the living room gaming experience. This transition means that the next Xbox won't be confined to a proprietary ecosystem but will support a wide range of PC gaming platforms, including Steam. Such a strategy opens up access to an expansive library of Windows games, potentially giving Microsoft an edge over traditional consoles with more limited selections. The Asus ROG Xbox Ally, a Windows-powered handheld, exemplifies this direction, though reviews highlight that Windows can be cumbersome on smaller devices compared to tailored systems like SteamOS. Despite these challenges, Microsoft is optimizing Windows for gaming-focused hardware, ensuring compatibility with existing Xbox titles and enhancing performance for future devices.

This pivot isn't just about software compatibility; it's a response to market struggles. Xbox Series S/X sales have declined sharply, pushing Microsoft to leverage its dominance in PC gaming—where Windows remains the default platform for most gamers. By integrating Windows into its consoles, Microsoft could offer a seamless "Play Anywhere" experience, allowing games to be played across devices without the need for extensive porting by developers. This approach also hints at licensing opportunities, where Microsoft could provide its console-optimized Windows interface to other hardware manufacturers, mirroring past efforts like Valve's Steam Machines but with the vast Windows game library as a key advantage.

SteamOS Evolution: A Formidable Challenger

Valve's SteamOS has undergone a remarkable transformation since the initial Steam Machines flopped in 2015 due to limited game compatibility and performance issues. Today, thanks to the Proton compatibility layer, SteamOS can run Windows games on Linux with impressive efficiency—sometimes outperforming Windows on identical hardware. This advancement has made SteamOS a serious contender, especially with the success of the Steam Deck, which doubles as a living room console when docked to a TV. Features like Nvidia’s GeForce Now and Remote Play further enhance its versatility, allowing high-end gaming even on less powerful hardware.

Valve's strategy doesn't hinge on producing its own hardware for the living room. Instead, it certifies SteamOS for third-party devices, as seen with the Lenovo Legion Go S, the first non-Valve handheld to officially run SteamOS. This open approach lets PC manufacturers create diverse gaming devices, from mini PCs to full-sized rigs, all optimized for a console-like experience. Valve's focus on user experience—offering smoother gameplay, better battery life, and a controller-friendly interface—has been praised by users who’ve switched from Windows to SteamOS on handhelds, noting immediate improvements in performance and usability.

Performance and User Experience: SteamOS Takes the Lead

When it comes to raw performance on handheld devices, SteamOS often outshines Windows. Users report smoother gameplay with reduced stuttering, thanks to pre-cached shader downloads and a leaner system that minimizes background processes. On the Lenovo Legion Go, for instance, switching to SteamOS resulted in noticeably better frame rates and battery life, even without full TDP control on older models. The ability to suspend games mid-play, akin to a Nintendo Switch, adds to the appeal, addressing a significant pain point with Windows handhelds where such functionality is inconsistent.

The user interface of SteamOS is another strong point. Designed for touch and controller input, it boots directly into a gaming-focused environment, avoiding the clutter of Windows notifications and updates. This streamlined experience contrasts sharply with Windows, which, despite efforts like the "Xbox Experience for Handheld," still struggles with desktop elements that feel out of place on gaming devices. Microsoft’s response to this gap includes plans to optimize Windows 11 for handhelds, potentially with a dedicated mode, but it’s clear that SteamOS currently offers a more polished out-of-the-box experience for portable gaming.

Game Compatibility: Windows Holds the Edge

While SteamOS excels in performance and usability, Windows retains a significant advantage in game compatibility. With over 1,000 games in a typical Steam library, only about half are currently playable on SteamOS due to compatibility issues, particularly with multiplayer titles reliant on anti-cheat software. Games from other platforms like GOG or Epic Games Store require additional tools to run on SteamOS, whereas Windows supports them natively. Additionally, services like PC Game Pass are exclusive to Windows, making it the go-to choice for gamers who prioritize access over optimization.

Microsoft is capitalizing on this strength by promoting an "aggregated game library" through its Xbox Experience, ensuring access to titles unavailable on SteamOS. This vast compatibility could be a game-changer if extended to a living room Xbox console, offering a library depth that SteamOS, despite Proton’s advancements, can’t yet match. However, as SteamOS compatibility grows, this gap may narrow, intensifying the competition.

The Living Room Battle: Openness vs. Ecosystem Control

The potential for PCs to dominate living room gaming is a shared vision for both Microsoft and Valve, but their approaches differ. Microsoft’s Windows-based Xbox could break down barriers between PC and console gaming, offering an open platform with access to multiple stores and mod support—features traditionally absent from consoles. Yet, this openness might come at the cost of Microsoft’s control over its ecosystem, potentially sacrificing the 30% cut it takes from third-party developers on its current Xbox marketplace.

Valve, on the other hand, champions openness with SteamOS, a free and largely open-source platform that avoids the telemetry and bloat associated with Windows. By not tying itself to specific hardware, Valve encourages a diverse range of living room devices from partners, fostering competition and innovation. This strategy has already pressured Microsoft to prioritize Windows optimization for handhelds, as seen with the delay of a native Xbox handheld to focus on competing with SteamOS.

Frequently Asked Questions

What advantages does SteamOS offer over Windows for gaming handhelds?

SteamOS provides smoother gameplay with less stuttering due to pre-cached shaders, better battery life by minimizing background processes, and a user-friendly, controller-optimized interface. It also supports game suspension, allowing instant pauses, which Windows struggles to match consistently.

Why is Microsoft shifting focus to Windows for its gaming devices?

Microsoft aims to leverage its dominance in PC gaming to revitalize its struggling Xbox brand by integrating Windows into future consoles and handhelds. This move offers access to a vast game library, simplifies cross-device play, and responds to competitive pressure from SteamOS’s success in the handheld market.

Will Valve release a dedicated SteamOS console for the living room?

While rumors of a Valve-made Steam Box have circulated, it’s unlikely in the near future. Valve’s strategy focuses on certifying SteamOS for third-party devices rather than producing its own hardware, allowing partners to create varied living room gaming solutions.