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On September 20, 2013, Valve posted a statement on its website titled The Steam Universe is Expanding in 2014 which teased three new announcements related to 'even more ways to connect the dots for customers who want Steam in the living-room'. History Дuring a panel at LinuxCon on September 16, 2013, Valve co-founder and executive director Gabe Newell stated that he believed 'Linux and open source are the future of gaming', going on to say that the company was aiding game developers who want to make games compatible with Linux, and that they would be making an announcement the following week related to introducing Linux into the living room. The installers can be sourced through Valve's repository.

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There is also an ISO image installer that supports legacy BIOS motherboard. This method allows for smaller hard-disk sizes.

NVIDIA ( Fermi graphics cards or newer), Intel, or AMD graphics card (RADEON 8500 or newer)ДЄ custom installer method is also available, which can require additional configuration steps.

The current system hardware requirements for default SteamOS installations include:

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In October 2015, an update allowed Netflix and other DRM protected content to function in the native built-in browser. Music playback only supports local music collections. However, video content is only available from Steam's store, which has a small number of films. Valve stated that it has added support for movies, television, and music to SteamOS. The OS natively supports Nvidia, Intel, and AMD graphics processors.

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However, Steam does have full-length films from indie movie makers available from their store. Though the OS does not currently support streaming services, Valve historically considered integration with Spotify and Netflix.

Users can, however, access the KDE Plasma 5 desktop environment and perform tasks such as installing other software. Since SteamOS is solely for playing games without a mouse or keyboard, it does not have many built-in functions beyond web browsing and playing games for example, there is no file manager or image viewer installed by default. The operating system is open source, allowing users to build on or adapt the source code, though the actual Steam client is closed. Valve claims that it has 'achieved significant performance increases in graphics processing' through SteamOS.

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Users are also able to stream games from their Windows, Mac or Linux computers to one running SteamOS, and it incorporates the same family sharing and restrictions as Steam on the desktop.

It can run games natively that have been developed for Linux and purchased from the Steam store.

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SteamOS is designed primarily for playing video games away from a PC (such as from the couch in one's living room) by providing a console-like experience using generic PC hardware that can connect directly to a television. It runs SteamOS 3.0, which is based on the Arch Linux distribution with a KDE Plasma 5 desktop, rather than the Debian base with GNOME desktop used for earlier versions of SteamOS. In July 2021, Valve announced the Steam Deck, a hybrid video game console. With SteamOS, Valve encouraged developers to incorporate Linux compatibility into their releases to better support Linux gaming options. SteamOS was built to support streaming of video games from one personal computer to the one running SteamOS within the same network, though the operating system can support standalone systems and was intended to be used as part of Valve's Steam Machine platform. The initial versions of SteamOS, versions 1.0 and 2.0, were based on the Debian distribution of Linux. It is the primary operating system for the Steam Machine gaming platform and Steam Deck hybrid video game console by Valve. It is open source with some closed source components. SteamOS is a Linux distribution by Valve. Open source base system with closed source componentsД«rewmaster release 2.195 (JulyВ 18, 2019 2 years ago ( ) ) Д«rewmaster_beta release 2.195 (JulyВ 18, 2019 2 years ago ( ) ) ДЄPT (versions 1.0 and 2.0), pacman (version 3.0)Дpkg (versions 1.0 and 2.0), pacman (version 3.0) KDE Plasma 5, default desktop environment of SteamOS 3.0.