The issue comes down to how the device interacts with your computer. Just like the original version, the new Steam Controller has no native Windows drivers. This means the hardware relies entirely on the Steam app to function properly. If you do not have the game running via Valve’s storefront app, your shiny new gamepad turns into a useless piece of plastic.
Gamers Nexus also reported this and there are a lot of other news outlets also covering this. It is kinda the same as with the steam deck where I noticed that the inputs just don’t work until steam is launched. I really don’t like that I have to have Steam running for this controller to work. I don’t know if it is a dealbreaker for me, yet, but it really put a damper on my enthusiasm about it
The fact that this isn’t a new thing doesn’t mean that it’s a good thing. Especially since nowadays there are good third-party controllers with remappable buttons that can also switch to a KB/M functionality at the push of a button. Also, I paid 5,50€ for my brand new original Steam Controller, so Valve kinda has to convince me to spend about 18 times that. I don’t know if this is a dealbreaker for me, but I’d definitely consider it “not great”.
You should definitely use those alternatives and they sound superior.
At the end of the day, this is the Steam Machine’s controller and it’s designed for use in the Steam and Linux ecosystem. Its behaviour and lack of generic xinput is intentional.
Well, at the end of the day it still has a bit of a killer feature that other controllers don’t: the touchpads. If I buy it, it’ll be my secondary controller for playing FPS, CRPGs etc on my projector.
And yet DS4 and DS5 work, so that’s not even a good excuse.