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That's also why the Steam Deck succeeded. It's a normal computer, but it has all the stuff you need to play games built in, so it's much easier to transport. It serves a previously unserved niche.
Not really. I had a go at a Steam Machine, an Alienware Alpha.
The issue was, back in those days there was no real controller support. And so the games i wanted to play, i could not. Back then they only had a certain library of games on Steam OS that can be played with a controller.
And a very small library at that. Not to mention, the dashboard very clunky. I sent it back to Dell.
I think now with their Steam interface for controllers, and the strides they have made all around since then it would likely do much better. But if Xboxs new console can get Steam, i'd likely go that route with Win 11.