ChimeraOS, which essentially is SteamOS for PC, can be used to setup a couch gaming station. A PC a console if you may.
My Xbox One Wireless controllers and the Microsoft usb-dongle worked out of the box with my old PC (i5 w Intel graphics).
A majority, if not all, of my Steam games with controller support works flawlessly.
ChimeraOS also has built in support for different emulators and also Epic game store and some more
Wait - the Microsoft wireless dongle? That looks like a small USB drive? If that works out of the box I’m definitely setting up a second drive with ChimeraOS on it. I got it working in PopOS but it was a pain in the ass IIRC. That was awhile ago though.