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The handheld gaming PC market continues to evolve rapidly, with manufacturers exploring alternatives to Windows for better user experiences on small-screen devices. Zotac is preparing to make a significant move in this space with an upgraded version of its Zone handheld gaming PC featuring not only improved hardware but also a surprising software choice.Close-up view of the Zotac Zone handheld gaming PC, emphasizing its sleek design and gaming interfaceA New Direction with LinuxZotac will showcase an advanced model of its Zone handheld at Computex next week, featuring a significant departure from the Windows 11 operating system found in the original model. Instead, the new device will run a custom operating system based on Manjaro Linux, which shares the same Arch Linux foundation as Valve's popular SteamOS. This marks an interesting strategic choice at a time when many expected non-Valve handhelds to simply adopt SteamOS, which is becoming increasingly available for third-party devices.Powerful Hardware UpgradesThe advanced Zone model will feature AMD's Ryzen AI 9 HX 370 APU, representing a substantial performance upgrade over the previous generation. This is the same Strix Point chip that serves as the foundation for AMD's Ryzen Z2 Extreme, which benchmarks suggest offers significant performance improvements over processors found in current portable gaming PCs. The device will also feature an OLED display, enhancing visual quality for gaming on the go.Zotac's Zone handheld device equipped with advanced gaming controls, signifying its hardware enhancementsBucking the SteamOS TrendZotac's decision to develop its own Linux-based operating system is particularly noteworthy as it comes at a time when SteamOS is expanding beyond the Steam Deck. Valve recently launched a SteamOS beta supporting devices like the Lenovo Legion Go and Asus ROG Ally, with more compatibility expected later this year. The Legion Go S is even planned to ship with SteamOS pre-installed at a USD $150 discount compared to its Windows counterpart.Potential Advantages of a Custom OSWhile Zotac hasn't detailed its reasoning for developing a custom Manjaro-based solution rather than adopting SteamOS, there could be strategic advantages. One possibility is that Zotac's OS might offer easier access to multiple game launchers without requiring users to enter a desktop mode, addressing a limitation of SteamOS which primarily focuses on Steam's ecosystem. The custom approach could also allow Zotac to implement unique features tailored specifically to its hardware.Industry ImplicationsThis move by Zotac adds to the growing trend of Linux-based operating systems challenging Windows' dominance in the handheld PC space. Microsoft appears to be taking this threat seriously, reportedly collaborating with Asus on an Xbox-branded ROG Ally featuring a new Windows interface based on the Xbox menu system. This device could potentially debut at Computex alongside Zotac's new offering, setting up an interesting battle between different approaches to handheld gaming interfaces.Availability QuestionsDespite the exciting announcement, some uncertainty surrounds Zotac's handheld strategy. The original Zone reportedly struggled with availability issues since its supposed September 2024 launch, with limited retail presence. This raises questions about whether the new advanced model will face similar distribution challenges when it eventually comes to market.The Growing Linux Gaming EcosystemWith Zotac joining the ranks of manufacturers exploring Linux-based solutions for gaming handhelds, the ecosystem continues to mature. Like SteamOS, Zotac's Manjaro-based OS will likely utilize the Proton compatibility layer to run Windows games, potentially offering a streamlined, handheld-friendly experience without sacrificing game compatibility. If successful, this could represent another option in the expanding landscape of operating systems designed specifically for portable gaming PCs.