This new handheld OS is a huge threat to Valve and the Steam Deck

Windows is closing the gap to SteamOS and the Steam Deck in general with the new gaming-focused approach to the Asus Xbox Ally handhelds. This new, stripped-back version of Windows boots directly into an Xbox full-screen experience and gives little reason to ever leave the application.

While the Steam Deck is still the best gaming handheld for most, the recent reveal of the Asus Xbox Ally is the biggest threat to Valve's dominance. It's unsurprising to anyone who has used both a Deck and a Windows handheld that the key to Valve's success has been software-related, more so than hardware.

Microsoft has confirmed via an Xbox Wire post that the Xbox Ally handhelds will be running a new, handheld version of Windows. It mentions new modifications that "minimize background activity," while it will also "defer non-essential tasks." It's claimed that these changes will make more system resources, such as system memory, available for gaming, and thus result in "higher frame rates."

This new XboxOS, as we'll call it, for lack of an official name, also offers immediate access to games from other storefronts, such as Steam, GOG, and Battle.Net. The only major exception is the Epic Games Store, but Epic is yet to add native controller support to its storefront, meaning it can only be navigated using a touchscreen or mouse and keyboard.

Shockingly, as part of this new operating system, Xbox is also working on a handheld game rating system, akin to the much-maligned Steam Deck game rating system. I've called out this system multiple times in recent months for its inefficiency, so this is quite the gauntlet for Xbox to throw down.

The only question for me is whether Windows will be altered in any way outside of the Xbox app. Will there be a gaming and desktop mode just like SteamOS, or will the changes made to Windows drastically reduce its usability? I'm looking forward to testing out this new handheld version of Windows soon, but at first look, SteamOS could be in some serious trouble if it's as good as advertised.

If you want to take a closer look at some other Windows handhelds that are currently available, read our Ayaneo 3 review or our AOKZOE A1X preview.

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