The Steam Deck is still regarded as the best gaming handheld PC, primarily due to its seamless integration of hardware and software for gaming.

Valve's SteamOS is evolving, with the upcoming 3.8 version expected to support non-Valve handhelds, marking a significant shift in the gaming handheld market.

The Lenovo Legion Go S, set to launch in May 2025, will be one of the first devices to feature SteamOS, highlighting the growing trend towards SteamOS-based handhelds.

Recent demonstrations have shown that SteamOS is successfully running on Asus and Lenovo handhelds, outperforming their Windows counterparts in gaming performance.

YouTuber Phawx showcased SteamOS on the Asus ROG Ally, a competitor to the Steam Deck, although this version has limitations in recognizing device-specific inputs.

SteamOS is increasingly viewed as more suitable for handheld gaming than Windows 11, thanks to its development over the past three years.

Transitioning to SteamOS may enable handhelds to utilize less overhead, maximizing their hardware capabilities and enhancing gaming performance.

Modders have previously demonstrated the versatility of non-Valve handhelds by running alternative Linux-based systems, paving the way for broader SteamOS adoption.

The success of SteamOS on handhelds could pose a challenge to Microsoft's plans for an Xbox-centric handheld, as it may struggle to compete with SteamOS's user-friendly interface.

Despite its advantages, the Steam Deck still shows better performance in certain titles, such as Horizon Zero Dawn: Remastered, indicating it remains competitive.

Currently, most handheld PCs operate on Windows 11, utilizing a handheld interface and Steam's Big Picture Mode, but the landscape is changing.

Native SteamOS support could significantly improve functionality for both new and existing handheld PCs, including potential retrofitting options.