Something I said on our Xbox Two Podcast this weekend was taken a little bit out of context by some news aggregates, and it led to rumors that Microsoft was exploring quitting Steam. They are absolutely not exploring that (right now), but there is good reason to think Microsoft is evaluating how it engages with Windows gaming all up.
Someone superchatted in during the live show and asked if there was a scenario where Xbox would ever quit Steam. Microsoft has been re-engaging with exclusive content as of late, with Gears of War: E-Day being the tip of that spear. It’ll be exclusively on Xbox Series X|S on console, removing PlayStation from the equation. It is, however, still launching on Steam on PC, in addition to Xbox PC.
PC gaming seems to be core to Xbox’s future. Xbox Helix is going to be a gaming PC in essence, and component prices are making the Xbox Series X|S a non-starter for many. At least for the duration of the memory crisis, Microsoft likely isn’t expecting to sell a ton of its own hardware. So, targeting users where they already are, without completely exiting the hardware landscape, is likely the play for now.
So, given that Microsoft literally owns Windows, how are they hoping to corner a bigger piece of the lucrative PC gaming market, even if it doesn’t mean undermining Steam directly?
Xbox will continue to support Steam, but it’s planning to expand its PC business too
Xbox is still investing a ton in improving the Xbox PC app, which now sports Xbox Mode on Xbox handhelds and Windows 11 PCs, turning your desktop environment into a more optimized, controller-focused interface. The Windows 11 team wrote just last week about how it intends to further boost the OS for gaming and optimization in general. We live in a world where Linux and SteamOS seem to offer significant gaming performance gains by simple virtue of not being Windows — Microsoft absolutely wants to solve that gap.
But furthermore, I’ve received information from multiple trusted sources that Microsoft and Blizzard have been planning to open Battle.net up to third-party developers. It’s unclear if that’s still the plan under new Xbox CEO Asha Sharma, but so far, I’m not yet seeing evidence that the plans here were canceled.
Battle.net boasts enormous monthly active users in its own right, and technically has its own “exclusives” in the form of World of Warcraft, Heroes of the Storm, and some other Blizzard classics.
Microsoft already tested launching some Xbox games through Battle.net, including Avowed, The Outer Worlds 2, and DOOM: The Dark Ages. It seems Battle.net is being redesigned to offer more third-party content beyond the Microsoft ecosystem in the future, while still acting as the primary delivery platform for Blizzard games like Diablo IV and Overwatch.
Battle.net and the Xbox PC app already form a “bridge” of sorts via Xbox PC’s plugins section. Microsoft is also working with publishers like Ubisoft and EA to integrate their own PC stores to give publishers the opportunity to deliver their content directly while integrating Xbox Series X|S, Xbox Cloud, and Xbox PC ecosystems and features. Ubisoft announced last week that owners of some Xbox Series X|S console games will receive their Xbox PC versions for free, for example, and it’s likely the program there will expand over time.
There’s a lot of unknowns here, of course. There are some gaps and pitfalls when it comes to third-party titles on the Xbox PC store. Diablo IV, for example, doesn’t support Xbox Play Anywhere, meaning users have to buy DLC multiple times for multiple platforms. Ubisoft games on PC don’t support Xbox achievements either, even though you can sync your progress on some games to Xbox Series X|S devices.
Just how seamless the synchronicity between platforms will be remains to be seen, but the core of it is pretty simple: it’s about giving developers more options for selling games, and putting more games in front of users where they already are on PC. The PC market is pretty fragmented given its open nature, with different launchers, stores, and platforms competing for attention. Xbox is trying to make it more seamless for PC players who want the integrations using its plug-in systems, while also leveraging the platforms it already has to create more opportunities for developers in general.
Blizzard games are generally seasonal in delivery, so it’s a potential win for Xbox if, during typical patch cycles, Blizzard gamers pick up another game inside the ecosystem rather than leave for something external on the Riot Client, Epic Games Store, HoYoverse launcher, or wherever else.
Positron and Xbox emulation on PC
Microsoft is also known to be creating a bridge between console and PC with its Positron platform.
Xbox “Positron” is a system designed to help gamers convert disc-based games into digital licenses. If those games support Xbox Play Anywhere (and up to 50% of new releases currently do these days), then you will also get the PC version of any Xbox Series X|S disc-based game you connect to your Microsoft Account.
Sources suggest to me that Positron is expected to be revealed some time in August as Microsoft works out some of the finer details. It won’t support every single game on Xbox 360, Series X|S, and Xbox One, but it will support a significant amount of titles pending licensing hurdles and agreements with publishers.
Another tool Microsoft is using to grow its presence on PC is the unassuming backwards compatibility emulator we saw ship a few weeks ago.
Xbox has arguably been a leader in the digital preservation space, ensuring games from decades ago still function on modern systems. In some cases, the only way to play certain old school games has been on Xbox consoles via backward compatibility. But Microsoft is planning to expand that even further to include PC gamers in the mix as well.
For now, the Xbox backward compatibility emulator on PC includes four OG Xbox games, including Conker, Blinx, and Crimson Skies. Future plans also include Xbox 360 games, which could light up some major classics that have, in some cases, up to now, been completely locked to consoles.
It would help Microsoft close some big gaps in its PC ecosystem, which came in pretty late and is sadly still missing out on mountains of classic games. It would also help Xbox gain access to a wealth of new content that would potentially perform better on lower-end handheld devices, such as the Xbox Ally S, in a universe where hardware prices have become truly insane.
Lots of potential, but polish is paramount
Xbox’s history with PC gaming has been checkered, to say the least. PC gamers of a certain age still call back to the dark days of Games for Windows Live. Even those who might’ve dabbled more recently lament Xbox PC’s feature and app gaps when compared to Steam.
On lower-end devices especially, the Xbox PC store is still not as performant as it probably should be, especially on that initial load. The Xbox PC store search functionality isn’t particularly great either, and curation is a mixed bag. It’s hard to find new games at times, and many games to this day still skip the platform, even though Xbox PC offers a far more generous cut than Steam does.
The Xbox PC store has improved by a huge amount, and now probably represents roughly 50% of my play time. I’m currently bouncing between Xbox Series X|S and Xbox Ally X while playing Hell is Us, for example, and many upcoming major AAA titles like Blood of the Dawnwalker and Onimusha from Capcom do support Xbox Play Anywhere.
Indie developers still aren’t huge fans of the Xbox PC platform either, sadly, with long certification times and difficult policies making shipping on Xbox PC needlessly complex. Without some form of Game Pass deal, it seems many indie developers simply don’t think it’s worth the effort.
It’ll be interesting to see what Xbox does to continue improving adoption on their end, and particularly how Battle.net handles some of this stuff in the future (if plans don’t change under new CEO Asha Sharma). None of it means Xbox will walk away from Steam; there’s simply too much money to be left on the table. PC has long been a place of platform plurality, and Xbox is seemingly embracing that aspect of Windows gaming in a big way.
RELATED: Xbox Helix and Steam — does it still make sense?
If it works, could Microsoft look to a future where it focuses on its own platforms rather than Steam or Epic Games? It’s perhaps a window at best, but not likely in the medium or even long term. But given how Microsoft is pressuring Xbox to deliver bigger margins at all costs, I suspect today’s incarnation of Xbox would be less philosophically inclined towards supporting Steam if it felt it didn’t have to. But that’s just my (potentially cynical) opinion.
As far as I know, Xbox has no plans whatsoever to quit Steam, even as it doubles up on Xbox PC and potentially Battle.net as store destinations for its developer ecosystem.
All of this is before we learn more about Xbox Helix, and how Microsoft plans to bridge the console and PC ecosystems with its own hardware … More competition should be good for consumers, at least in theory. Ideally, whether you’re on Steam or not, Microsoft’s boosted attention towards Windows should improve PC gaming in general.
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