

Millions of Steam Decks and their ilk have been sold, and run games significantly better on SteamOS than their Windows counterparts, to the point that Microsoft is reportedly cancelling their own gaming handheld plans. Not a massive challenger to the Switch 2 for most ordinary people, but things are definitely changing.
It is. On their YouTube channel there’s a very interesting Q&A on their event earlier this year, here: https://youtu.be/os_fHy1mB_M There was a question specifically about making a smartphone. They explained it was very unlikely they’d ever do that and explained their reasoning behind it, so I’d highly recommend watching the video of you’re interested in how they think.