If you've ever tried to type using a gamepad or gaming device, you know it can be tricky, especially with this new generation of handheld gaming PCs like the Steam Deck and Asus ROG Ally X, so it’s good to see that Microsoft is currently trialling a new and improved gamepad keyboard layout for Xbox controllers in Windows 11.

The Verge reports that the new layout isn’t the only thing PC gamers with Xbox controllers can look forward to - they will also be able to use the X button for backspace, the Y button for spacebar, and the menu button of a connected Xbox controller to hit enter (as you would on a physical keyboard). Microsoft is also adding vertical alignment (consideration for the arrangement of keys in the vertical direction) to make it easier to type with the on-screen keyboard.

The new on-screen keyboard is currently in user testing in the Windows Insider Program’s Beta Channel, which means we expect it to roll out to all eligible users pretty soon (unless Microsoft changes its mind).

The bigger picture of Windows handheld gaming

I think it’s smart for Microsoft to continue developing Windows 11 to improve its gaming abilities while also working on other things like its AI-powered Copilot tool. Windows 11 is now the most-used operating system by PC gamers (at least according to a recent Steam survey), and while it performs fine for gaming laptops and desktop PCs, the operating system isn’t quite as well suited to gaming handhelds, which have smaller screens and rely on controller inputs, rather than traditional keyboards and mice, which Windows was originally designed for.

While the new gamepad-friendly on-screen keyboard has been well received by many so far, there’s more work that can be done - and handheld PC gaming is an exciting, and growing, market. As The Verge points out, Microsoft can still improve things like being able to log into Windows with an Xbox controller, as well as ensure that the on-screen keyboard automatically appears when you select text fields to write in them.

I could see Microsoft addressing these in the near future, as we recently wrote about Microsoft’s improved Windows Game Bar with Compact Mode, making it easier to control your device while you’re playing a game - even on a smaller screen. The Xbox app has also gotten controller improvements to make it easier to navigate the app while using an Xbox controller, so it’s good to see that Microsoft isn’t completely distracted by adding AI into all parts of Windows 11.

If Microsoft’s handheld gaming offerings continue to improve, I think it could make Valve, the company behind the Linux-based SteamOS operating system that the Steam Deck uses, sweat a little bit. I’m certainly excited to see what else Microsoft has up its sleeve when it comes to Windows on handheld devices, which is something I haven’t felt in a long time.

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