Valve just made a major move to bring the Steam Deck’s OS to more handhelds

Valve just made a major move to bring the Steam Deck’s OS to more handhelds

  • 17.03.2025 14:01
  • pockettactics.com
  • Keywords: Valve, SteamOS, Windows 11, Microsoft, Lenovo Legion Go S, Xbox-style user interface

Valve is expanding SteamOS beyond the Steam Deck, introducing it to other gaming handhelds as part of the SteamOS 3.7.0 update. This move aims to enhance usability over Windows-based devices and intensify competition with Microsoft in the handheld PC gaming market.

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Estimated market influence

Valve

Positivesentiment_satisfied
Analyst rating: N/A

Valve is introducing SteamOS to more handhelds, enhancing their position in the gaming market.

Microsoft

Microsoft

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Microsoft faces competition from Valve's SteamOS adoption by other brands.

Context

Analysis: Valve's Expansion of SteamOS to Handhelds

Key Facts and Data Points

  • Valve announced support for non-Steam Deck handhelds in the latest SteamOS 3.7.0 Preview update.
  • The move is strategic, targeting the growing market of gaming handhelds competing with Microsoft’s Windows-based devices.
  • The first non-Valve device to use SteamOS will be the Lenovo Legion Go S, set to launch in May 2024.

Market Trends and Business Impact

  • Windows 11 limitations: Current Windows-based handhelds face usability issues, such as game crashes and intrusive pop-ups, which hinder user experience.
  • SteamOS adoption: The expansion of SteamOS could influence other manufacturers to adopt Valve’s OS, potentially shifting market dynamics in favor of SteamOS.

Competitive Dynamics

  • Valve vs. Microsoft: Valve is countering Microsoft’s dominance in the handheld PC gaming space with its own OS. Microsoft is reportedly developing a new Windows-based system with an Xbox-style UI for later 2024.
  • Strategic partnerships: The inclusion of SteamOS in third-party devices like the Lenovo Legion Go S could strengthen Valve’s market position and diversify its revenue streams.

Long-Term Effects and Regulatory Impacts

  • Potential industry shift: If successful, this move could lead to broader adoption of SteamOS across multiple brands, challenging Microsoft’s dominance.
  • Consumer benefits: The competition between SteamOS and a potential improved Windows-based system could drive innovation and better user experiences in handheld gaming.

Strategic Considerations

  • Market expansion: Valve is targeting a growing market segment with its OS, positioning itself as a key player beyond the Steam Deck.
  • Potential for ecosystem growth: By supporting multiple devices, Valve can build a larger ecosystem around SteamOS, enhancing its appeal to developers and users alike.