Microsoft has prioritized artificial intelligence enhancements for Windows. In contrast, Valve has steadily been drawing the PC gaming market away from Microsoft by developing the Linux-powered SteamOS as a viable alternative to Windows. Soon, gaming laptops might operate on SteamOS rather than Windows, a shift Microsoft has largely brought upon itself.
Valve's expansion in PC gaming extends beyond the Steam Deck portable device, including a forthcoming Steam Machine for living room setups. The PC gaming sector, encompassing titles primarily developed for Windows, has grown to surpass the scope of Windows itself.
As Microsoft concentrated on Xbox hardware and cloud-based services, Valve captured the core of PC gaming.
For a long time, the appeal of PC gaming has driven many to choose Windows machines. Apple has largely overlooked gaming on its Mac systems, while Google's support via Steam on Chromebooks is set to end. Microsoft invested heavily in Xbox as a distinct platform separate from Windows.
Valve's initial effort to separate PC gaming from Windows came with the 2013 launch of its Linux-oriented SteamOS. This was followed by Steam Machine consoles from various partners. SteamOS emerged during the Windows 8 period, when Microsoft appeared to be steering toward a more restricted, touch-centric system similar to iPad interfaces, potentially limiting Steam's availability on Windows. Steam was incompatible with the Arm-powered Windows RT, which only supported Microsoft's proprietary apps such as Office.
Valve adapted its titles, including Half-Life 2 and Portal, for Linux and encouraged developers to bring their games to the platform.
SteamOS in 2013 failed to gain traction. Consumers showed little interest in partner-built Steam Machines, and developers hesitated to allocate resources for ports to a niche operating system. Nonetheless, SteamOS exerted influence on the market, compelling Microsoft to maintain Windows as an accessible platform not confined to its own Store, unlike the abandoned Windows RT.
Although Steam Machines faded from availability and Microsoft adjusted its approach to Windows, Valve persisted in supporting Steam on Linux distributions.
The pivotal development arrived with Valve's 2018 introduction of the Proton compatibility tool, integrated into Steam to enable Windows games on SteamOS and other Linux systems. Proton draws from Wine, a longstanding compatibility solution for running Windows software on Linux and macOS.
Early Proton versions showed promise but had limitations. Wine, in use since the early 2000s, was known for inconsistency. While various firms experimented with it, Valve committed substantial resources to refine it over time.
Ongoing enhancements to Proton coincided with the 2022 release of the Steam Deck, which relies on SteamOS. Developers optimized their Windows titles for Proton's Linux environment to ensure smooth performance on the device. Today, the bulk of Steam library games function seamlessly on Linux without manual adjustments.
It's remarkable that the vast majority of Windows-designed PC games now operate on Linux, with the leading PC gaming platform promoting Linux over Windows. This outcome surprised Microsoft and even long-time Linux enthusiasts who doubted Wine's potential for broad reliability.
Performance tests indicate that PC games frequently run more efficiently on SteamOS compared to Windows 11. Users of Windows-based handhelds, such as the Lenovo Legion Go, have noted inferior experiences relative to the Steam Deck. Reviews of devices like the Lenovo Legion Go highlight how Windows constraints limit potential, prompting Microsoft to develop a dedicated full-screen Xbox interface for handheld gaming in Windows.
Sustained effort often leads to breakthroughs. Since 2022, Valve has employed over 100 open-source contributors to advance Proton and key SteamOS components, according to Valve developer Pierre-Loup Griffais in an interview with The Verge. During this period, Microsoft explored features like Edge's cryptocurrency wallet, the metaverse, and AI initiatives, while Valve concentrated on establishing SteamOS as a robust gaming OS.
One remaining Windows advantage lies in anti-cheat mechanisms for multiplayer titles, which require deep system access to prevent cheating. Proton initially lacked such support, but developers supporting the Steam Deck have integrated solutions like Easy Anti-Cheat and BattlEye into Proton.
Moreover, many players prefer avoiding invasive anti-cheat tools that resemble rootkits. Steam now mandates developers to reveal such requirements on product pages. Lack of full anti-cheat compatibility in SteamOS could even appeal to some users, despite excluding certain titles.
Beyond that hurdle, Valve has achieved significant progress. With Microsoft diverted by other priorities, the PC gaming landscape has grown more flexible, adaptable across Windows, SteamOS, and various Linux variants.
SteamOS functions as a Linux distribution, emphasizing the Big Picture mode for handhelds and the upcoming Steam Machine, yet it serves as a full desktop OS currently. Valve leverages the established Linux desktop infrastructure, which has matured considerably. Featuring the KDE Plasma interface, SteamOS allows users to exit the Steam overlay for standard desktop tasks, such as browsing with Firefox or Chrome. It can be installed on gaming desktops or even docked Steam Decks for PC use.
The anticipated 2026 Steam Machine release is likely to see users employing its desktop mode for Linux experiences on television screens.
Looking ahead, SteamOS could power laptops and desktops alike—installation on desktops is already possible. Microsoft, meanwhile, emphasizes web-based applications over native Windows software.
PC gaming represented a key barrier to entry for alternatives to Windows, ensuring compatibility with hardware and vast game libraries, even for Linux-curious users. That edge is eroding, as hardware makers start pre-installing SteamOS on devices.
Valve is also preparing for Arm architecture over x86 from Intel or AMD. The Steam Frame, Valve's inaugural Arm-based SteamOS device, takes the form of a standalone VR headset. Valve supports the Fex emulator, enabling Proton on Arm SteamOS hardware to execute x86 Windows games via an integrated Fex layer.
As Griffais noted, 'In 2016, 2017, there was always an idea we would end up wanting to [run PC games on Arm hardware], and that’s when the Fex compatibility layer was started, because we knew there was close to a decade of work needed before it would be robust enough people could rely on it for their libraries.'
Valve leads in gaming portables, positioning the Windows-SteamOS rivalry as akin to historic console battles.
Microsoft can no longer contain this momentum. To respond, it could enhance Windows gaming, refine handheld support, elevate performance, and evolve future Xboxes into versatile PCs compatible with Steam libraries. Competition with Valve seems inevitable regardless. Windows no longer holds monopoly status in PC gaming. Ironically, Windows 8 aimed to solidify Microsoft's platform control, yet today its influence wanes more than ever.
Chris Hoffman authors The Windows Readme, a weekly newsletter delivering Windows tips, techniques, and tests to over 10,000 subscribers. He previously served as editor-in-chief of How-To Geek and has contributed to outlets including The New York Times, PCMag, Reader's Digest, and others as a seasoned technology writer.