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A new Steam Deck rival could be on the horizon courtesy of a PC gaming giant

A new Steam Deck rival could be on the horizon courtesy of a PC gaming giant

  • 25.03.2025 16:38
  • pockettactics.com
  • Keywords: AI, Startup

HP is reportedly considering creating a SteamOS-powered handheld gaming PC to rival the Steam Deck, following Valve's decision to allow brands to use SteamOS instead of Windows. This move could intensify competition in the handheld market, with HP joining Asus and Lenovo, while Microsoft works on an Xbox-branded device to counter SteamOS.

Microsoft ReportsBHPsentiment_satisfiedASUUYsentiment_neutralLNVGYsentiment_neutralMSFTsentiment_dissatisfied

Estimated market influence

HP

HP

Positivesentiment_satisfied
Analyst rating: Neutral

HP is considering developing a handheld gaming PC with SteamOS, which could rival the Steam Deck.

Valve

Positivesentiment_satisfied
Analyst rating: N/A

Valve allows other brands to use SteamOS, enabling competition in the handheld gaming market.

Asus

Neutralsentiment_neutral
Analyst rating: Buy

Asus has already introduced a competing product.

Lenovo

Lenovo

Neutralsentiment_neutral
Analyst rating: Buy

Lenovo has already introduced a competing product.

Microsoft

Microsoft

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Microsoft faces competition as other brands adopt SteamOS, potentially impacting Windows' dominance.

Context

Analysis of Market Implications and Business Insights

Key Facts and Data Points

  • HP's Interest: HP is reportedly considering developing a handheld gaming PC using SteamOS, signaling potential competition for Valve’s Steam Deck.
  • Valve's SteamOS Licensing: Valve has allowed other brands to utilize SteamOS, enabling devices like the upcoming Lenovo Legion Go S with SteamOS.
  • Market Competition: Asus, Lenovo, and others already offer handheld gaming PCs, with the first SteamOS-based device (Lenovo Legion Go S) set to launch in a few months.
  • Microsoft's Response: Microsoft is reportedly collaborating with another company (possibly Asus) to develop an Xbox-branded handheld as a potential competitor to SteamOS.

Market Trends and Business Impact

  • Shift from Windows to SteamOS: The move by brands like HP and Lenovo indicates a growing preference for SteamOS over traditional Windows-based systems in the handheld gaming market.
  • User Experience Focus: SteamOS is highlighted for its seamless, game-centric interface, which could attract users dissatisfied with Windows' complexity.

Competitive Dynamics

  • Valve's Dominance Challenged: While Valve leads with the Steam Deck, competitors are leveraging SteamOS to close the gap.
  • Microsoft’s Play: Microsoft aims to counter SteamOS by potentially introducing an Xbox-branded handheld, which could influence user interface preferences in the market.

Strategic Considerations

  • HP’s Potential Entry: HP’s foray into SteamOS-based devices underscores its strategic focus on gaming hardware and could redefine its position in the gaming PC market.
  • Lenovo’s Leadership: Lenovo is poised to be an early adopter of SteamOS with its upcoming device, potentially capturing market share before others.

Long-Term Effects

  • Ecosystem Expansion: Widespread adoption of SteamOS could expand Valve’s ecosystem and solidify its position in the handheld gaming sector.
  • Regulatory Implications: While not explicitly mentioned, future regulatory developments could impact competition dynamics between Microsoft, Valve, and other players.

This analysis highlights the evolving competitive landscape in the handheld gaming PC market, driven by strategic moves from major tech brands and shifting consumer preferences.