Tuesday, January 20, 2026

Microsoft’s Redesigned Xbox PC App Faces Uphill Battle Against SteamOS

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  • Microsoft’s new Xbox PC app aims to optimize Windows 11 for handheld gaming.
  • A new “full-screen experience” will mimic SteamOS’s Game Mode but launches exclusively on the ROG Xbox Ally.
  • SteamOS maintains an edge with better performance, community plugins, and widespread compatibility.
  • Windows 11 still holds value for anti-cheat games and modding, making it ideal for dual-boot setups.

With the Asus ROG Xbox Ally handheld gearing up for launch, Microsoft is ramping up its efforts to make Windows 11 a better platform for portable gaming. The company’s redesigned Xbox PC app is central to that plan, aiming to offer a smoother, more console-like experience on handheld devices.

However, for many gamers, including myself, the question remains: can Microsoft really catch up to Valve’s SteamOS, which has become the gold standard for handheld PC gaming?

Windows 11’s Ongoing Handheld Struggles

For years, portable PC players have complained about Windows 11’s lack of optimization for handhelds. The operating system often forces users to dig through menus, navigate multiple game launchers, and wrestle with inconsistent game performance.

Compared to SteamOS’s streamlined interface and better resource management, Windows 11 has felt clunky and underprepared for the handheld market.

Microsoft hopes to change that narrative with its updated Xbox PC app. One of the headline features is the Aggregated Game Library, which scans your device for installed titles from Steam, Epic Games, Battle.net, and GOG Galaxy, displaying them all in one unified hub.

While this sounds promising, the catch is that these games still open through their original launchers, which means the experience isn’t as seamless as it could be.

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The “Full-Screen Experience” Could Be a Game-Changer – Eventually

Perhaps the most exciting addition is the upcoming “full-screen experience.” This new mode is designed to mimic SteamOS’s popular Game Mode by removing unnecessary background processes to improve performance and deliver a more console-like feel.

The downside? At launch, this feature will be exclusive to the ROG Xbox Ally, with plans to expand to other Windows handhelds only in 2026.

That delay could hurt Microsoft’s chances, especially as Valve continues to improve SteamOS and expand its reach to more devices like the Lenovo Legion Go S.

SteamOS Still Holds the Upper Hand

Valve has a significant head start. SteamOS has been refined over several years, offering better optimization and a UI designed specifically for handhelds. Add in community-driven enhancements like Decky Loader and plugins such as Lossless Scaling, and it’s clear why many gamers see SteamOS as the superior choice for portable gaming.

Another factor is Valve’s commitment to supporting non-Steam Deck hardware. The company is actively improving SteamOS compatibility across different devices, making it an increasingly appealing option for handheld PC owners.

Where Windows 11 Still Wins: Compatibility

Despite SteamOS’s dominance, Windows 11 isn’t without its strengths. Some games, especially those with strict anti-cheat systems like Call of Duty: Black Ops 6, won’t run on SteamOS at all. Certain mods also require extra steps on Linux-based systems, which can be a headache for players who love customizing their games.

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For this reason, many gamers are turning to dual-boot setups, running both SteamOS and Windows 11 on their handhelds or desktop PCs. In that scenario, Microsoft’s redesigned Xbox app and upcoming handheld mode could make Windows 11 a strong secondary OS, even if it doesn’t replace SteamOS outright.

The Road Ahead

Microsoft’s renewed focus on handheld gaming is a welcome move, but it faces an uphill battle. SteamOS has years of refinement, better performance, and a devoted community behind it.

For the Xbox PC app to win over SteamOS loyalists, Microsoft will need to deliver more than just a new interface – it will need to close the gap in usability, performance, and portability.

For now, SteamOS remains the reigning champion of handheld PC gaming, and while Microsoft’s efforts are promising, it might be too little, too late to dethrone Valve.

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Emily Parker
Emily Parker
Emily Parker is a seasoned tech consultant with a proven track record of delivering innovative solutions to clients across various industries. With a deep understanding of emerging technologies and their practical applications, Emily excels in guiding businesses through digital transformation initiatives. Her expertise lies in leveraging data analytics, cloud computing, and cybersecurity to optimize processes, drive efficiency, and enhance overall business performance. Known for her strategic vision and collaborative approach, Emily works closely with stakeholders to identify opportunities and implement tailored solutions that meet the unique needs of each organization. As a trusted advisor, she is committed to staying ahead of industry trends and empowering clients to embrace technological advancements for sustainable growth.

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