The Xbox handheld, which is currently in development, is expected to leverage a Windows backend, while the Steam Deck uses a custom operating system called SteamOS. Here's a detailed comparison of these two approaches:
Xbox Handheld with Windows Backend
Microsoft is working on integrating the Xbox experience with Windows to create a more streamlined gaming environment for handheld devices. This involves optimizing Windows for a controller-only interface, similar to what is found on Xbox consoles. The goal is to simplify the user experience, making it more console-like and less reliant on keyboard and mouse inputs, which are typical of traditional Windows systems[4][7].
However, using a full Windows backend on a handheld device can present challenges. Windows is designed for a broader range of applications beyond gaming, which can lead to a cluttered interface and usability issues on smaller screens. Microsoft aims to address these issues by refining the Windows experience for handheld gaming, potentially leveraging features like widgets on the Xbox Game Bar to enhance controller-based interactions[7].
Steam Deck with SteamOS
In contrast, the Steam Deck runs on SteamOS, a custom Linux-based operating system specifically designed for handheld gaming. SteamOS provides a console-like experience optimized for gamepad controls, making it easy to navigate and play games without needing a keyboard or mouse[2][6]. This operating system is tightly integrated with the Steam ecosystem, offering features like cloud saves, remote play, and access to the entire Steam Store directly from the device[2].
SteamOS is streamlined for gaming performance and includes Proton, a compatibility layer that allows users to play Windows games on Linux without requiring porting by developers[2]. While SteamOS is generally praised for its seamless gaming experience, it can be buggy, and some users may encounter issues like Wi-Fi connectivity problems[6].
Comparison
- User Experience: SteamOS offers a more streamlined and console-like experience tailored specifically for handheld gaming, while Windows on Xbox handhelds aims to achieve a similar feel but may require more customization to match SteamOS's simplicity[4][6].
- Game Compatibility: Windows provides broader compatibility with a wide range of games and applications, including those not available on Steam. However, SteamOS benefits from its integration with the Steam ecosystem and Proton for running Windows games on Linux[3][6].
- Customization and Flexibility: Windows offers more flexibility for users who want to customize their experience or run non-gaming applications, but this comes at the cost of a more complex interface. SteamOS is optimized for gaming and offers less flexibility outside of that scope[5][6].
In summary, while both approaches have their strengths and weaknesses, SteamOS on the Steam Deck provides a more focused gaming experience, whereas the Windows backend on the Xbox handheld offers broader compatibility and customization options but may require more refinement to match SteamOS's ease of use.
Citations:
[1] https://www.techpowerup.com/330012/xbox-cross-platform-ui-leak-confirms-microsoft-targeting-handheld-gaming-experience
[2] https://www.steamdeck.com/en/software
[3] https://www.reddit.com/r/WindowsOnDeck/comments/11togbr/steam_os_vs_windows_on_deck/
[4] https://www.newsweek.com/entertainment/microsoft-will-combine-xbox-windows-experience-handheld-pcs-this-year-2011731
[5] https://www.slashgear.com/1533918/ways-to-customize-steam-deck/
[6] https://www.digitaltrends.com/computing/asus-rog-ally-vs-steam-deck/
[7] https://www.windowscentral.com/gaming/xbox/xbox-hardware-report-project-keenan-next-gen-xbox-2027
[8] https://github.com/mikeroyal/Steam-Deck-Guide/blob/main/Games%20and%20Software/Operating%20Systems.md
[9] https://arstechnica.com/gaming/2025/03/six-ways-microsofts-portable-xbox-could-be-a-steam-deck-killer/
[10] https://www.resetera.com/threads/microsofts-portable-way-forward-xbox-handheld-vs-improving-windows-on-handhelds.938673/