The Steam Deck continues to lead the portable gaming PC sector overwhelmingly, while Valve prepares to launch a next-generation Steam Machine aimed at living room console experiences, potentially heightening Microsoft's concerns regarding Windows 11's appeal for gamers. Such worries appear justified. A recent post on the Windows blog indicates ongoing efforts by Microsoft to boost gaming capabilities.
The Windows Experience blog, in its 2025 year-in-review, states: 'We remain dedicated to positioning Windows as the premier platform for gaming,' and highlights persistent enhancements in critical areas including management of background processes, optimizations for power usage and scheduling, upgrades to the graphics framework, and fresh driver releases. For those finding the technical details dense, the essential message boils down to smoother and quicker gameplay.
Microsoft deserves credit for tangible recent advances in this domain. It introduced the Xbox Fullscreen Experience for the Asus ROG Xbox Ally portable device and has since rolled it out across all Windows 11-compatible handhelds. This setup skips unnecessary elements for gaming sessions, such as the traditional desktop environment and extraneous background programs, while offering a full-screen, controller-optimized menu for navigating titles. It noticeably enhances performance, though limited to specific handheld scenarios. The company also permits testing this mode on standard PCs and laptops, albeit requiring a few extra steps.
This setup represents a step up from forcing the complete Windows 11 interface onto screens measuring 7 to 9 inches, and surpasses the makeshift gaming shells developed independently by brands like Lenovo and Asus. Importantly, it preserves Windows' versatile core features, allowing swift returns to the standard desktop, even if switching back proves less straightforward.
Nevertheless, the Xbox Fullscreen Experience falls short of the refinement seen in SteamOS or Steam's Big Picture Mode, which is accessible to desktop users. This contrast may stem from Valve's more than ten years of iteration versus Microsoft's ongoing preview phase. The emphasis on core performance tweaks in the annual overview suggests Microsoft recognizes the competitive pressures it faces.
Amid excitement over upcoming Steam devices, frustration among players forced to upgrade from a reliable Windows 10 to accommodate escalating AI integrations and subscription models, plus increasing costs for the premium Game Pass tier, 2026 stands as a pivotal year for Windows-based PC gaming. It presents openings for Valve and competitors, while posing significant tests for Microsoft.