Valve's Steam Deck gaming handheld and SteamOS have a weakness in running only Windows games from Steam supported by Proton compatibility layer.
Microsoft and Asus' co-developed ROG Xbox Ally aims to provide a more comprehensive compatibility solution for PC gamers by introducing a new Xbox-branded user interface on top of traditional Windows.
The Xbox-branded user interface will initially be available on the ROG Xbox Ally and will later roll out to other Ally handhelds, with a similar interface coming to other Windows handhelds starting next year.
Microsoft has been experimenting with bringing a Steam Deck-style handheld-optimized user interface to Windows since at least 2022, identified during an internal hackathon about a proposed 'Windows Handheld Mode.'