For Microsoft, the key threat is that the Steam Deck isn't even a Windows OS device by default, let alone having Microsoft's Xbox services and Game Pass on it. Valve has used the platform, very successfully, to evolve Steam from being simply a digital store that runs (usually) on Windows, into being a very capable gaming OS in its own right.
That, perhaps more than anything else happening in the industry in recent years, is a threat to Microsoft's plans for the Xbox platform and gaming more broadly – and if the success of the Steam Deck is a key component of that threat, then creating an Xbox device to compete directly in that space seems like the logical response.
And there's the real reason why Microsoft cares. The success of the Steam Deck is a threat to Windows because it runs Linux. Also, the more games that run on the Steam Deck means the more games run on Linux.
Microsoft normally solves problems like this by abusing their monopoly and crushing their competition. In this case though, Microsoft is the underdog since Steam is the one with a much larger gaming monopoly. They're going to have to spend billions and billions if they want to stand a chance against the Steam Deck.
The other enormous problem they face is that Windows is very, very far behind when it comes to technology compared to Linux. Devices made for Linux vastly outperform the best hardware that runs Windows. Even if that hardware was made to run Windows!
Windows is decades behind Linux from a technological development standpoint. For example, Windows is still running the same filesystem from over 30 years ago!
What this means is that for any given portable hardware Linux is going to vastly outperform Windows in basically every benchmark from battery life to frame rate. That doesn't even include the fact that in Windows you're forced to install many background apps (and kernel level rootkit anti-cheat) that takes up memory and slows everything down just to get basic security and play games.
Microsoft normally solves problems like this by abusing their monopoly and crushing their competition. In this case though, Microsoft is the underdog since Steam is the one with a much larger gaming monopoly. They're going to have to spend billions and billions if they want to stand a chance against the Steam Deck.
Oh, they still do it regardless. There was a handheld that was supposed to release with HoloISO (SteamOS) preinstalled instead of Windows to hit a lower MSRP.
Microsoft stepped in (and probably gave them free Windows licenses) just so that wouldn't happen.
At the same time Linux is eating their lunch on the server side thanks to containers and immutable systems not really being a thing that is possible for anyone but Microsoft to build on Windows and licensing becomes extremely complicated compared to Linux in those areas.
And the mad part is I regularly find Windows games run better on Linux though Proton than on Windows directly - and my Windows partition is only for gaming (no other crap installed)!
Microsoft seems to be trying to transition away from consoles to become a distribution platform and publisher. They’re heavily entrenched in the business ecosystem so the os is pretty safe (for now), but they want to leverage consumer pc dominance to kickstart their gaming division transition
I'm far to be a pro Microsoft but Windows is more versatile to run games. Asus understood it. If you want to play with steam, xbox, gog or indie games. It's far more flexible than linux even if some huge progress were done.
And valve has already won. Everyone else is just playing catch-up, and good luck catching up to a Linux-driven steam-integrated platform. You will need it.
Yeah I only have used the steam deck, but I imagine the alternative Windows based handhelds feel much more clunky/hacky since Windows has issues suspending things in general, especially games. Maybe they fixed some of the issues on that end by now, but I feel like SteamOS is really the best and most viable option here for these other companies looking to cash in on this trend. Especially since Windows is bloated as is and not really made for this type of thing.
Not sure if Valve does this already, but perhaps they could license out SteamOS to other manufacturers too? It would make Valve's "competition" more lucrative for them. At the very least, I hope more people start using SteamOS so Linux gaming gets more adoption as time goes on. Valve has done absolute wonders for the linux community with Proton.
Eh, you're right, but also I think Nintendo is usually kinda in their own category. We see xbox/ps comparisons all the time, but rarely nintendo, since it isn't really a drop-in comparison. I think this is a similar case -- the switch outsells everything strictly for "handhelds", but it isn't really solving generalized handheld gaming.
I like mine a lot, but I also have a Switch because I really like the first party games and the gameplay is great for our kids. However, I only play Switch when my kids are watching, when they're in bed, I'm on my Steam Deck.
Mine is just sitting there collecting dust. My kids have switch lites. And what they don't have on theirs we emulate or abstain. I've got steam link for now I guess.
Windows and linux handheld's are so powerful and versatile. They are both great portable consoles and decent PCs. I'm using a legion go as a flatscreen and PCVR puck to play in VR anywhere and i freakin love it.