Replacing an old Xbox One S
I'm an old fart now with 2 kids so I don't have much time for gaming, hence the old One S being my only console. When I find a bit of time to play games it is usually on Steam on my PC. But my kids are hitting the age where they like the console either for Minecraft or multiplayer together (Forza and the old Ninja Turtles arcades mostly). We don't have gamepass, they are too young for online multiplayer but my oldest is probably 2-3 years from it. For what they do the old console is honestly perfect except that it is on it's last legs. It takes over 4 minutes to load a Minecraft world and in general seems slow/laggy. So I'm figuring I will have to replace it in the near future.
I know the PS5 is crushing the current Xbox but it would mean giving up all my old games. That content is crazy outdated now but is fine for my kids so actually has (some) value to me. For my kids the simplicity of the console is great; push power button, see list of games, click A and go.
The ROG Ally looks like a cool combination of not losing my Xbox content and being able to play my Steam catalog. But I don't really care about the handheld portion and I'm sure it is sacrificing power vs a console even if it has a docking option. I don't know much about the Steam Machine and Steam Deck has same drawbacks as the ROG. I thought I saw somewhere that the new Xbox might have Steam support but that's over a year away right?
What other options I should be considering? Related question that might not be in the right place to ask, if I make the switch to PS5 is it possible for them to not lose all the mods and worlds they have on Minecraft when we switch over?