No Microsoft is not falling behind. DirectX is in no danger it is growing and growing.

You fail to realize that Windows is better. I am happy Microsoft is open sourcing their toolkits.

Heh I wondered when a proper Linux evangelist would show up!

*grabs popcorn and a big 'soda', gets comfy*

No, Windows is technically inferior. Not to mention that even according to MS engineers, the company doesn't care about OS innovation anymore. Bloat and bad performance are rampant. When it comes to OS innovation MS can't compete with Linux which is developed collaboratively by multiple participants including Google, Intel, IBM, and other huge companies. Server business where performance is critical demonstrates that clearly - MS has lost the OS race. The only reason Windows is still used on the majority of desktops is historical and is preserved by network effects. That will change now faster than before, since Valve found a side door to break that monopoly. I think Steam Machines is the biggest threat to desktop Windows domination that ever appeared.

That's your pure speculation. Valve has all the potential not just to be successful but to beat competition in consoles market into the dust.

The Steamboxes might beat the consoles market but it won't change anything on the desktop PC market.

On the contrary. Valve wisely didn't try to reinvent the wheel but used regular PC hardware for Steam Machines as well as regular Linux (Debian) as a core for SteamOS. It means that the growth of gaming on Steam Machines will automatically benefit desktop gaming on Linux (because all of the games will be just compatible). That will boost Linux adoption on desktops in return and that's the worst MS nightmare. Of course it depends on whether Steam Machines will succeed as a project. But things look good for Valve. And they are working hard to help developers with OpenGL tools, for example with Vogl debugger and etc. That eliminates any remaining DirectX advantage (ease of development).

The Steamboxes will not benefit the desktop PC market. Most people will install Windows on the Steamboxes.

Most people won't install anything special. Installation of a new OS is not something a majority of consumers ever do. That's exactly what MS use to preserve their monopoly, since many hardware vendors don't sell their computers with anything besides Windows. A prebuilt console with Linux preinstalled and sold in big numbers will shift the balance and will benefit Linux outside Steam Machines as a result.

Watch I bet you most people will install Windows on the Steamboxes.

YOU'RE !
(sorry, couldn't resist)

If you want to lose your bet. Let's revisit this in a year.

Ok 1 year from now lets come back to this topic. Deal?

Sure. Steam Machines are planned to be released during 2014, so in 2015 there should be enough interesting trends to analyze. I'd say 2014 is close to be revolutionary for Linux gaming. Steam Machines, GOG Linux games, major planned releases like Witcher 2, Wasteland 2, Divinity Original Sin and etc. I don't remember so many Linux gaming events pending for one year.

Wait, why would anyone buy a Steambox just to wipe it and then put Windows on, instead of just getting a funky looking ultra small form factor Windows PC and a couple of them Steam controllers?
Either Steamboxes will sell and people will use their Linux distro (which will probably look about as much like a typical desktop Linux environment as an Android phone does) or they won't sell, which is a real possibility - I can't see much buy for wiping going on, sorry!