One of the Steam Deck’s primary advantages over more powerful handheld gaming PCs is its operating system, which is designed to mimic a game console interface within a Linux PC environment. Valve has long planned to bring the OS to other devices, but a recent Steam Deck software update includes the first mention of a rival handheld.
I think they need to do this now before Microsoft does it first. Xbox is flailing and the daylight they can see from there is the Xbox/PC ecosystem. Turning Xbox from a box to a brand that merges PC and console into a fluid system would be the best way to pivot the market and put Sony on the back foot.