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  1. Hardware
  2. Handhelds

Microsoft apparently just upped its Windows licence fee for OEM handheld and PC makers, and I'm taking it as an excuse to switch to Linux

News
By Phil Hayton
Published 11 August 2026

Pretty bold to assume we all want to use Windows, Microsoft.

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MSI Claw 8 AI+ handheld with Windows 11 desktop on screen and sad text face on top.
(Image credit: Phil Hayton)
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Windows 11, an operating system I'm not convinced we even want powering out handhelds and PCs, has apparently hiked OEM licence prices. That means it has potentially cost more for companies to pre-install it on your gaming device of choice, and I can't help but think that's ridiculously bold of Microsoft considering Linux is gaining prominence.

The report, courtesy of Chinese publication UDN, claims Windows OEM licences have increased by "7% to 10%" since July (via Videocardz). That's according to a "PC brand executive" who says while Microsoft typically increases its fees for the operating system every year by single digits, it has now allegedly slapped OEMs with a much higher bill compared to previous years.

Increased supplier costs on anything linked to making gaming handhelds or full PCs will naturally aggravate already spiralling MSRPs. OEMs like the laptop manufacturer Framework have already been sounding the alarm on increases, including higher Windows licence fees, before now, so we could start to see it cited as a reason for higher price tags on far more devices.

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Hand holding ROG Xbox Ally X with Xbox app on screen.

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I would perhaps take the idea that anything gaming-related is increasing in price due to Windows licence fee hikes with a grain of salt, at least until we get a blanket announcement from Microsoft. While OEMs don't negotiate on usage prices, the figures tend to be tied to various factors like machine specs and volume of production.

That is to say, some of the bigger names out there, like Dell and HP, could be getting discounts compared to smaller builders, and if we're talking about something like the ROG XBOX Ally X, then Asus likely isn't paying any licence fees since it's a partnership device. It's instead companies like Ayaneo who could end up footing a bigger bill as a result of these changes, meaning those extremely pricey boutique Windows handhelds could be hit.

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Even if the effects aren't as dramatic as RAM and storage hikes sparked by AI demand, this is the last thing the gaming tech scene needs right now. It's safe to say devices like the Steam Deck OLED and the freshly launched Steam Machine have proven there's an appetite for a less bloaty OS for playing games, and if Microsoft isn't going to do the bare minimum to help the industry while it's in turmoil, it's perhaps an even bigger sign to switch to Linux.

Steam Deck OLED with game library on screen sitting on woodgrain desk

(Image credit: Future / Phil Hayton)

Don't get me wrong: Windows has its perks when used with portables like the ROG Xbox Ally or alternatives like the Lenovo Legion Go S, but it has taken a while to get near SteamOS standards. New boons like OG Xbox emulation via Game Pass will also help keep the operating system in the mind of players, but Microsoft is playing with fire considering it'll rely on the PC scene for its upcoming Project Helix console.

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I'll be watching to see how any potential Windows licence fee increases impact the scene, and if they contribute to the destruction of RAMageddon, I'll be banging the Linux drum harder.

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Hardware Editor

Phil is the Hardware Editor at GamesRadar+ who specializes in retro console setups, choosing the latest gaming handhelds, and navigating the choppy seas of using modern-day PC hardware. In the past, they have covered everything from retro gaming history to the latest gaming news, in-depth features, and tech advice for publications like TechRadar, The Daily Star, the BBC, PCGamesN, and Den of Geek. In their spare time, they pour hours into fixing old consoles, modding Game Boys, exploring ways to get the most out of the Steam Deck, and blasting old CRT TV visuals into their eye sockets.

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