SteamOS does not scare the shit out of them at all. Microsoft's money is in dominating the business world. They like being in the video game world but it's only a portion of their portfolio whereas Valve is all in. Plus SteamOS didn't hurt them last time, why would they believe it will this time? Maybe it will, but unfortunately smart money is not betting against microsoft on this. Valve will continue to nibble at the edges and expand linux gaming, which is awesome, but look what it's taken to get to just under 5% of the gaming market (that's ALL of linux btw, not SteamOS).

Until Valve offers commercial offerings (never) I think M$ isn't losing sleep. They aren't even on the same plane in terms of scale and resources. They're competing for handheld pc gaming, but it's not high stakes for microsoft at all.

Yeah and they unleashed some not and trolls to critic Linux gale experience, saying that Xbox give more performance and play more games. Comparing Xbox to steamdeck but melt down and go for personnal insult pr deforming ypur words when you tell them to compare a Xbox with a linux PC with same specs than xbox