All of this sounds incredible to me. I don't want to use Steam OS because I primarily use Xbox Play Anywhere games and have even more games on other storefronts (usually ones I got for free like through Amazon prime). But boy do I want an optimized Windows for gaming. I wish I could beta test this now. 2026 is such a long wait for non Xbox (ROG) Ally devices.
I do also see the parallels to mobile and tablet devices. If Microsoft can pull this off for Xbox and gaming then they 100% could for better mobile experiences as well. They 100% could've done something like this with the Windows phone (merging it with full windows and turning it into an optimized experience) instead of abandoning it. I guess we should just be thankful that gaming makes them so much money. Still, I'm right there with hopes that these efforts are adapted and built upon for a heap of optimized experiences in windows. Microsoft could build windows to be truly versatile with different "modes" that optimize it for different uses/devices. A tablet mode that's similar to this upcoming Xbox mode is a definite need. Heck, I'd even argue for a mobile mode for a brand new windows phone. Microsoft desperately needs to get back in the mobile market and this could do it while boosting the native windows OS. Heck, they could even bring more native windows apps to the Microsoft Store with these optimized experiences. Hopefully, Microsoft notices the golden goose the Xbox team has presented them.