The lack of Linux game availability during the lifetime of Steam Machines led Valve to invest development into Proton, a Linux compatibility layer to allow Windows–based games to be run on Linux without modification. Steam Deck designer Scott Dalton said 'there was always kind of this classic chicken and egg problem with the Steam Machine', as it required the adoption of Linux by both gamers and game developers to reach a critical interest in the machines to draw manufacturers in making them. Valve quietly pulled back on it by April 2018, but stated they remained committed to providing some type of open-hardware platform. Valve's Steam Machine series of gaming computers using Linux-derived SteamOS was introduced in 2015, which worked their way into the conception of the Steam Deck. Additionally, users may install entirely different operating systems. The system features a desktop mode, allowing users to install Linux-based third-party applications. In addition to handheld use, the Steam Deck can be connected to a TV or monitor through a docking station and be used like a desktop computer or home video game console.

SteamOS incorporates Valve's Proton compatibility layer, allowing users to run Windows applications and games. The device uses Valve's Linux distribution SteamOS, which incorporates the namesake Steam storefront. The Steam Deck is a handheld gaming computer developed by Valve and released on February 25, 2022.

Steam handheld