Lenovo's highly anticipated SteamOS-powered Legion Go S handheld gaming PC has seen a significant price increase, with the base model now priced at $549.99, a $50 jump from its initial debut at CES 2025. This new price tag brings the device in line with the Steam Deck OLED model, potentially altering the competitive landscape in the handheld gaming market.

The Legion Go S was initially announced with a $499.99 price point, which positioned it as a strong rival to Valve's Steam Deck. The device boasts several attractive features, including Hall effect joysticks, an 8-inch screen with variable refresh rate, and a cozy design with adjustable triggers. However, its Ryzen Z2 Go chip failed to impress in early tests, with the Windows-based Go S models underperforming compared to the Steam Deck.

The price increase may not necessarily spell disaster for the Legion Go S, but it does diminish some of the excitement surrounding the device's launch. The SteamOS-powered version was seen as a potential game-changer, offering a more streamlined gaming experience compared to the Windows-based models. Despite this, the higher price point may make it less appealing to some consumers.

It's worth noting that the Legion Go S is not the only third-party handheld device to adopt SteamOS. Asus' ROG Ally is also set to receive SteamOS support later this year, with a beta experience expected to launch "after March sometime." This expansion of SteamOS support may ultimately benefit the gaming community, but it remains to be seen how these devices will fare in the market.

The price hike may also impact the overall perception of the Legion Go S. While it still offers some unique features and advantages over the Steam Deck, the higher price point may make it less competitive. It will be interesting to see how the market responds to this change and whether Lenovo can still make a significant impact in the handheld gaming space.

In the broader context, the development of SteamOS-powered handheld devices marks an important shift in the gaming industry. As more manufacturers adopt the operating system, it may lead to a more diverse range of handheld gaming options, potentially challenging Valve's dominance in the market. While the Legion Go S's price increase may be a setback, it's clear that the handheld gaming landscape is evolving rapidly, and consumers can expect to see more exciting developments in the coming months.