The most notable difference between the Xbox Ally and the Steam Deck is the operating system. Like the ROG Ally, the Xbox Ally will also use Windows 11, while the Steam Deck uses Valve's SteamOS.

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Since the Xbox Ally consoles are Windows-based, you can access any PC gaming library you want as long as it's compatible with Windows. The central UI will consolidate all of your games across every app into one place, too, which is nice.