In a bid to enhance compatibility for PC gamers, Microsoft, in collaboration with Asus, has launched the ROG Xbox Ally. This handheld gaming device integrates a new Xbox-branded interface over a traditional Windows system, providing a more streamlined gaming experience akin to SteamOS.
The ROG Xbox Ally aims to address some of the shortcomings of Valve’s Steam Deck and its default operating system, SteamOS, which primarily runs games compatible with its Proton compatibility layer. While Valve’s Proton allows for the operation of a broad selection of Windows games, it doesn’t serve as a complete substitute for Windows, leading to limitations in overall gaming options.
The innovative Xbox interface will debut on the ROG Xbox Ally but is expected to expand to other handheld devices in the future. According to Microsoft, a similar interface will roll out to various Windows handhelds starting next year, which suggests the company’s commitment to forging a more unified gaming experience across platforms.
This new interface was reportedly influenced by an internal Microsoft initiative that recognized the need for a dedicated handheld mode within Windows. The proposed “Windows Handheld Mode” would offer a tile-based gamepad interface reminiscent of that found on the Nintendo Switch while solving numerous usability issues present in Windows for handheld use.
On the ROG Xbox Ally, the interface replaces the conventional desktop-and-taskbar layout, a modification that Microsoft claims conserves system resources, freeing up several gigabytes of RAM and decreasing power consumption. In contrast, standard Windows versions on handhelds often run additional software, such as Asus’ Armoury Crate, which complicates the user experience.
Although users will still have access to a traditional desktop UI on the ROG Xbox Ally, it will require a manual launch, allowing for an uninterrupted handheld gaming mode. There are hopes that any version of this Xbox interface released for generic Windows PCs will similarly disable the traditional Windows UI to maximize efficiency and system performance.
Despite potential advancements, Microsoft has been comparatively slow to counter the resurgence of handheld gaming as seen with Valve’s Steam Deck and its associated software ecosystem. Initially, there were doubts surrounding the viability and market impact of these handheld devices. Traditional gaming PCs still dominate in terms of power and capability over these portable alternatives.
During this time, Microsoft has primarily focused on AI technology and security enhancements, potentially at the expense of developing its handheld strategy. This delay has inadvertently allowed the Steam Deck, along with SteamOS, to carve a niche within the market, fostering growth for software capable of running a variety of Windows games independently of Windows itself.
Proton and supporting projects like Wine have seen significant improvements with continued investment and attention, making SteamOS increasingly prevalent in upcoming gaming handhelds, including some of Asus’ ROG Ally models. Though the shift does not currently represent a mass migration away from Windows on consumer PCs, data shows that Linux’s share of the market has risen, surpassing 4 percent for the first time last year.
Historically, the Windows ecosystem has thrived on compatibility with a wide range of applications and games. However, with emerging technologies like Proton that facilitate game accessibility without the need for Windows, the landscape is shifting. This change threatens to disrupt the longstanding cycle of lock-in and inertia that has maintained Windows as the dominant operating system for PC users for nearly four decades, especially as its installation and operational complexities continue to grow.
image source from:https://arstechnica.com/gaming/2025/06/full-screen-xbox-handheld-ui-is-coming-to-all-windows-pcs-starting-next-year/