Sony and Microsoft are destroying console and PC gaming — here’s why the experts think Valve can save the day with SteamOS

(Image credit: Valve / Microsoft / Sony / Future) Loath as I am to say it, the future of gaming platforms isn’t looking so rosy right now. Windows is increasingly becoming more recalcitrant, constantly throwing hurdles in the faces of PC gamers in the form of performance-ruining updates and unsolicited AI implementations. And in the console world, Sony has irked everyone by ditching physical games from January 2028, while the recent bout of mass layoffs at Xbox belies its ‘back on track’ messaging.Meanwhile, Valve appears to be going in the opposite direction. It already has a big advantage in the form of Steam, near enough the default storefront and launcher for PC gamers everywhere. Why, it’s generated an estimated $11.1bn in gross revenue in the first half of this year already. With pockets as deep as these, and without having to divert its earnings to shareholders (given it’s still, for now, a private company), that’s cash it can invest in expansion.So is now the perfect time for Valve to break out, capitalize on its competitors’ floundering and shoot its shot at making SteamOS the next big platform?SteamOS vs Windows (Image credit: Shutterstock / Future)There’s no question that SteamOS has been quite the success already. This is almost entirely thanks to the success of the Steam Deck, Valve’s hugely popular device that launched in 2022 and kickstarted a mini revolution in handheld gaming. It runs SteamOS 3, which is based on the Arch Linux distribution and far superior to its initial Debian iterations. These were used on the original Steam Machines of 2015, and are no doubt part of the reason for the discontinuation of the units in 2018.The big advantage of SteamOS 3 is its support for Proton, the compatibility layer that allows Windows games to run on Linux devices. Although it predates the Steam Deck, Proton found its calling on the handheld, proving a lot of doubters wrong by running a large library of modern games well on a small, portable device. Even AAA titles such as 007 First Light and Cyberpunk 2077 are perfectly playable, along with plenty of others.But Valve is no longer confining its operating system to the Steam Deck and Steam Machine. It’s recently expanded support to ARM, AMD and Intel devices, which means it can run on more devices such as the Lenovo Legion Go S and the Asus ROG Ally. Chris Hewish, a former Executive Producer at Activision and current President of gaming MoR Xsolla, explains the advantages of running SteamOS on such devices over Windows 11.“With the SteamOS 3.8 release in June, Valve officially took the OS beyond the Steam Deck to the ROG Ally line, and Lenovo's Legion Go family, and early Intel support is starting to pull devices like the MSI Claw into the fold," he tells me. "On the same hardware, reviewers keep finding it ahead of Windows 11 where handheld players actually feel it: battery life, sleep and resume, and an interface built for a controller instead of a desktop squeezed onto a seven-inch screen.”Sign up for breaking news, reviews, opinion, top tech deals, and more.So, does the continued success of SteamOS rely on expanding to more hardware? Greg Weller, Head of Gaming Partnerships at Generation Media, and someone with over 20 years of industry experience — which includes stints at Rockstar Games and Bethesda Softworks — thinks so.“The opportunity is significantly bigger if SteamOS continues to be device agnostic," he says. "The Steam Deck proved Valve could build a fantastic hardware experience, but the bigger strategic opportunity is allowing consumers to carry their Steam ecosystem across multiple devices rather than tying it to one piece of hardware.”He continues: “We're seeing the same evolution across other entertainment sectors, like music, film and television, which have largely moved beyond device-specific experiences. People increasingly expect their content to follow them rather than the other way around. So, Valve hardware can absolutely remain the benchmark experience, but if SteamOS becomes the connective layer between a player's library, identity and multiple devices, that's a much bigger opportunity.”However, not everyone in the industry shares this view. “SteamOS’ success largely depends on Valve's hardware for now and how far they actually push the OS itself,” says André Pimenta Ribeiro, CEO and co-founder of Anybrain, whose behavioral AI tools are used in popular online games such as Arc Raiders and The Finals.He adds: “SteamOS’ success largely depends on Valve's hardware for now and how far they actually push the OS itself. I think Valve’s best case here is to grow to a broader, more casual audience through its own hardware and by offering its massive library to the mainstream player base, rather than exporting SteamOS to more devices in general. Once Valve hardware or SteamOS reach more mainstream adoption, then opening up the ecosystem makes sense. For now it feels mostly like a development play.”Sticking points (Image credit: Shutterstock / aslysun)If SteamOS wants a larger slice of the gaming pie, though, there are certain obstacles it needs to overcome. Hewish points to one of the system’s major sticking points: its incompatibility with games requiring anti-cheat tools.“Kernel-level anti-cheat either does not run on Linux or has not been enabled there," he says. "Until the biggest competitive games work reliably through Proton, SteamOS is not a no-compromise choice. It is an 'as long as you don't play those games' choice, and those games are some of the most played in the world.”Another problem is what Hewish calls “hardware breadth,” explaining that: “Windows still has the deepest compatibility layer for the long tail: niche peripherals, capture cards, VR headsets, external GPUs. If the reports about official GeForce support come to pass, that closes a meaningful piece of the gap, since SteamOS has effectively been an AMD platform until now.”Of course, the other advantage of Windows is that once you’re done gaming, you can switch to using it as an everyday computer. “SteamOS is deliberately narrow, a console-like shell, and that focus is a strength on a handheld,” says Hewish. “But if it wants to take on Windows more broadly, the path into desktop mode for a browser, schoolwork, or a spreadsheet has to get smoother.”SteamOS vs consoles (Image credit: Microsoft / Sony / Future)But what about SteamOS as a console competitor? The revitalized Steam Machine launched in June this year was hotly anticipated, and looked like a serious contender to the PlayStation-Xbox-Nintendo triumvirate. Russell Kay, a former Grand Theft Auto developer and Head of popular 2D engine GameMaker, believes it was a success in bringing SteamOS to a wider audience.“In the living room, SteamOS is now a proper alternative to a console,” he says. "The library is already there, and so is the audience. Millions of people have a huge digital collection sitting on Steam, and SteamOS finally gives them a way to put that under the TV instead of on a console. That's a real advantage no other platform has.”However, he says: “The real problem is the price — Steam Machines cost more than a console. A gap that’s unlikely to close anytime soon thanks to the rising cost of RAM and hardware.”And there are other issues for SteamOS in the console space. Hewish explains: “The Steam Machine needs reasons to exist beyond ‘runs your existing library’. Consoles win on curation and exclusives as much as hardware. That fight is about habit and content, not benchmarks. Close the anti-cheat gap and keep the hardware momentum, and ‘the default handheld OS’ is realistic within a couple of years. [But] the living room is a longer climb no matter what the software does.”Ribeiro, meanwhile, thinks: "[Valve] can make a splash against this weaker console market, but right now it's still a niche system for a specific subset of people — growing beyond that depends on where they take it. Valve is known for doing its own thing, and that’s not always conducive to serving the broader global ecosystem of casual players. I think it makes sense from the perspective that they want to grow beyond a distribution platform, but the extent of impact and its longevity is still to be seen.”He concludes: “I already see Steam devices akin to consoles, such as the Steam Deck and Steam Machine. I wouldn’t replace my Windows PC or mobile device with it, but vs the existing console ecosystem, that’s more a toss-up.”The future of SteamOS (Image credit: Valve)It seems fairly clear-cut, then, that SteamOS is clearly leading the way when it comes to handheld gaming. But a push beyond that realm to usurp Windows or seriously challenge consoles is less certain.Ultimately, Hewish sees it this way: “Windows still wins in two places: games with kernel-level anti-cheat, and anything you want to do that is not gaming. And in the living room it is early days. The new Steam Machine only started shipping at the end of June. So I would put it this way: [SteamOS is] a genuine competitor on handhelds today, and a credible but very young challenger in the living room.”Of course, the high price of the Steam Machine certainly dampened its appeal. The consensus seems to be that while it was a capable device, it was too expensive to present a viable challenge to the living room market. Of course, the seemingly interminable RAM crisis threw a spanner in the works, even crashing the Steam Deck’s party thanks to a price hike that put a serious dent in its sales. But the fact remains the PS5, Switch 2, and Xbox Series X|S all undercut the Steam Machine considerably.But perhaps there’s hope yet for the Gabecube and other SteamOS implementations besides handhelds. After all, Hewish makes the point that having one platform dominate isn’t especially useful for game developers.He says: “If you make games for a living, you do not actually want any single platform to win outright, even one you like. Concentration is where leverage goes to die. When one storefront or operating system controls the path to players, it eventually controls the terms, the fees, and the relationship. The healthiest ending to this story is not SteamOS replacing Windows. It is real competition at the platform layer, because that is what forces every gatekeeper to treat developers and players better. SteamOS taking a real share does exactly that.”He further adds: “My bet is SteamOS becomes the preferred choice for people buying a device specifically to game, and Windows holds wherever one device has to do it all.” (Image credit: Valve)Weller sees another benefit to the gradual permeation of SteamOS.He says: “SteamOS has already established itself as a credible competitor, but not in the way people traditionally define competition. Rather than trying to replace Windows or persuade console players to switch overnight, SteamOS is reducing friction between players and the game libraries they've already invested in, allowing people to take their Steam ecosystem into more places and devices.”“This reflects a much bigger shift happening across entertainment. Historically, consumers bought hardware first and then built a content library around it. Now, they're increasingly buying into ecosystems. Players care less about the operating system they're using and more about whether their games, saves, achievements, friends and purchases move seamlessly between devices.”Gaming ecosystems have become important for another reason. “Our research found 72% of players discover games through social media, 67% through YouTube and 53% through platform stores such as Steam, PlayStation Store and Xbox Store," Weller explains. "Platform ecosystems have become both the storefront and the discovery engine. So SteamOS isn't simply an operating system but another touchpoint within a much broader ecosystem.”“Valve's long-term competitive advantage has never been selling games, but focusing on the surrounding ecosystem: community features, recommendations, cloud saves, and overall experience of staying connected to your library. Those are the areas where Valve can continue to differentiate, rather than relying on exclusivity.”The point about community features is an important one. The community around Steam has played a major role in the platform cultivating its loyal fanbase and the general good will of gamers. Its openness to mods and add-ons via its Workshop is a large part of this. And, as Kay points out, although games purchased on its storefront do contain DRM, “[it has] been one of the better stories when it comes to DRM". So if SteamOS wants to expand its horizons beyond handhelds, it needs to retain the element that sets it apart from other, closed-off gaming platforms.Do you think SteamOS is going to be the next big platform in gaming? Vote in the poll below, and if you want to say more, why not leave a comment as well? Lewis Maddison is a Reviews Writer for TechRadar. He previously worked as a Staff Writer for our business section, TechRadar Pro, where he gained experience with productivity-enhancing hardware, ranging from keyboards to standing desks. His area of expertise lies in computer peripherals and audio hardware, having spent over a decade exploring the murky depths of both PC building and music production. He also revels in picking up on the finest details and niggles that ultimately make a big difference to the user experience.