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



I’m still buying it, because this will fix the biggest hurdle for PC couch gaming for me.
I’m hoping the reviews are just poor and fail to test things properly or if a software update can provide basic functionality if this is all true.
Majority of my games are on Steam anyway, but for the occasional emulator that I don’t want to run through Steam…I’m hoping there’ll be some input to be recognized and I can map inputs manually.
Definitely a sucky situation for all of the GOG/third party launcher games people don’t have on Steam.