SteamOS, Linux, & Microsoft's Valve-Sized Problem, ft. Wendell of Level1 Techs

Summary

The discussion examines why Valve is investing in Linux and SteamOS, how its influence affects the open-source ecosystem, and whether Microsoft’s Windows strategy could threaten PC gaming.

Valve’s investment in SteamOS

Wendell compares Valve to a passenger in a car driven by Microsoft: Valve cannot safely abandon Windows overnight, so SteamOS gives it time to prepare an alternative. The concern is that Microsoft could make decisions that harm game compatibility, performance, or user control.

The speakers contrast Valve’s emphasis on convenience and customer value with platform strategies they see as focused on extracting revenue or steering users toward company-controlled stores. Backward compatibility is one example: making older games easier to play could help sell hardware and build loyalty, even if Valve does not resell those games in a new format.

Valve’s influence on Linux and open source

Valve’s work on Proton and other parts of the gaming stack has improved game compatibility and benefited Linux gaming and other distributions, including Bazzite and CachyOS. Wendell says Valve has also encouraged publishers to support Linux and helped developers across the ecosystem, rather than funding every component itself.

Wendell argues that trust in Valve should not be implicit. Open-source licenses provide a practical safeguard: if Valve changes direction, the community can continue using code already released under those licenses. He contrasts this with less transparent parts of some graphics-driver stacks.

The speakers also warn that a change in Valve’s ownership or incentives—such as a shift toward short-term shareholder or private-equity priorities—could lead to greater emphasis on extracting money from users. They note that access to a Steam library depends on the platform and its licensing terms, so it is not equivalent to owning a physical copy or an independently usable installer.

Microsoft and the future of PC gaming

Wendell argues that Microsoft’s Windows Store and some past gaming services have provided poor experiences for users and developers. He speculates that a more cloud-centered Windows strategy could give Microsoft greater control over users’ computing and data, creating a business risk for Valve. He also says Microsoft has felt threatened by Valve’s efforts but has struggled to respond effectively.

SteamOS and handheld gaming

Wendell has used an original Steam Deck and installed SteamOS on other hardware. He describes earlier SteamOS as tightly optimized for a narrow range of devices, with newer development moving toward broader hardware support.

The speakers note that Linux handhelds can have better frame-time consistency than Windows devices, particularly at lower power levels. They also discuss tradeoffs: Windows currently has an advantage on the MSI Claw 8 in CPU scheduling and battery life, while Linux scheduling on that hardware remained less polished at the time of the discussion. Nvidia support can also be a weakness for Linux gaming; Valve’s SteamOS hardware choices use AMD, which the speakers say better suits Valve’s needs.

One SteamOS-related feature they discuss is moving a game on a microSD card between devices and playing it with little setup, an experience compared to using a game cartridge. They contrast this with the extra work that can be involved in moving games on Windows.

Wendell also recounts running games on unusual hardware, including an Nvidia system using ARM. An anti-cheat system initially allowed the configuration but later rejected it, illustrating how Linux gaming can depend on publishers and anti-cheat providers choosing to support it.

Reviews, guides, and sources

No formal review or step-by-step tutorial is presented. The discussion includes hands-on impressions of SteamOS and handheld gaming, along with a reference to prior Bazzite benchmarking.

Main speakers: The GamersNexus host and Wendell of Level1Techs.