Valve to challenge Microsoft with SteamOS for third-party handheld consoles

Valve confirms it will extend SteamOS compatibility to devices like the ASUS ROG Ally, intensifying competition with Microsoft's Windows-based handheld gaming consoles

Valve, the American game developer and maker of the Steam Deck handheld gaming console, has confirmed that it is working on supporting SteamOS on third-party handheld consoles, including ASUS ROG Ally devices. With SteamOS coming to other handhelds, Valve poses a challenge to Microsoft, as most competitors to the Steam Deck run on its Windows platform.

In a community post detailing changes in the latest beta version of SteamOS, Valve announced that it has added support for “extra ROG Ally keys.” The company has also confirmed plans to allow other companies to use SteamOS on their devices. In a statement to The Verge, Valve designer Lawrence Yang said, "The note about ROG Ally keys is related to third-party device support for SteamOS. The team is continuing to work on adding support for additional handhelds on SteamOS."

SteamOS is a Linux-based operating system currently running on Valve’s Steam Deck gaming console. While other handhelds, such as the Nintendo Switch line and PlayStation Portal, run on custom operating systems, the majority of handheld gaming consoles use the Microsoft Windows platform. This includes devices like the ASUS ROG Ally, ROG Ally X, MSI Claw, and Lenovo Legion Go.

With Valve confirming that it will allow third-party handhelds to run SteamOS, it now challenges Microsoft, which has yet to optimise the Windows platform for the growing handheld gaming console segment. Microsoft’s lack of interest has forced OEMs such as ASUS and Lenovo to build their own custom layers on top of the Windows platform to make the user interface more suitable for handheld devices.

In contrast, SteamOS has been specifically designed for handheld gaming consoles. Valve was among the first companies to produce current-generation handheld gaming devices, giving it the opportunity to fine-tune SteamOS for this form factor.

Microsoft is reportedly working on an Xbox handheld gaming console; however, it is unlikely that this console would run Windows. The anticipated Xbox handheld might feature its own interface, similar to SteamOS, or Microsoft could adopt a strategy similar to Sony's by making the handheld a remote play device that works alongside traditional gaming consoles.