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Microsoft states that combining Xbox and Windows is the key to handhelds after SteamOS declares war

Summary Microsoft plans to merge Windows and Xbox for handheld gaming in 2025
Valve’s SteamOS aims to be integrated into all gaming handhelds
Microsoft must succeed with its hybrid to compete with Valve’s expansion efforts.
2024 was an excellent year for handheld enthusiasts, with a ton of different models being released for portable gaming. At the heart of it was a feud between two tech giants: Microsoft with its Windows 11 OS and Valve with SteamOS. Both found their way onto some excellent handhelds and drummed up their fair share of fans. Now, after Valve has stated its intent to get SteamOS running on every device, Microsoft has declared that 2025 will be the year that Xbox and Windows will combine.
Related Asus ROG Ally X review: Top-notch hardware dragged down by Windows The ROG Ally X’s hardware should make it dwarf the Steam Deck, but once again, Windows is a huge asterisk.
Microsoft is bringing a Windows-Xbox hybrid to handhelds
Source: ASUS
In a statement to The Verge, Jason Ronald, Microsoft’s VP of “Next Generation,” discussed what the company had planned for Windows handhelds in the new year. Its main goal is to combine its Windows and Xbox spaces into one solution that Microsoft hopes will provide the best of both worlds:
“I would say it’s bringing the best of Xbox and Windows together, because we have spent the last 20 years building a world-class operating system, but it’s really locked to the console. What we’re doing is we’re really focused on how do we bring those experiences for both players and developers to the broader Windows ecosystem. “I think, at the end of the day, our goal is to make Windows great for gaming on any device. The reality is the Xbox operating system is built on top of Windows. So there’s a lot of infrastructure that we built in the console space that we can bring to the PC space and really deliver that premium gaming experience on any device.”
Fortunately, we won’t have to wait long to see this new fusion in action. Jason confirmed that we’ll see the changes appear sometime in 2025.
Microsoft’s plans come a day after Valve throws down the gauntlet
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Unfortunately for Microsoft, it doesn’t have much time to make these changes, nor does it have the luxury of failing the first impression. A day before Microsoft made this announcement, Valve stated that it’s working on getting SteamOS on every gaming handheld, even if the OEM doesn’t supply it as a factory default. It wasn’t a huge surprise, given how Valve has always been supportive of third-party handheld manufacturers using its OS on their systems.
As such, the Redmond giant needs to get this new Windows-Xbox hybrid done quickly and done well. If it trips at the starting gate, it risks losing market share to SteamOS as it begins rolling out to handhelds worldwide.

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