In the wake of a significant acquisition spree led by former head Phil Spencer, Xbox finds itself navigating a turbulent landscape marked by layoffs, studio closures, and a fundamental reevaluation of its operational strategies to endure challenging market conditions. A focal point of these discussions is the company’s approach to PC gaming, with speculation suggesting a potential shift away from Steam, as highlighted by Windows Central’s Jez Corden.
Potential Shift in Strategy
Corden shared insights during a recent episode of the Xbox Two Podcast, stating, “I do know like Microsoft has some plans with regards to how they show up on PC.” He elaborated that while he couldn’t confirm specifics about Steam, the unfolding plans might provide Microsoft with an opportunity to reconsider its relationship with the platform. “I would not be shocked if eventually we do see a universe where Microsoft quits Steam,” he added, hinting at a significant strategic pivot.
This potential move would be monumental, given Xbox’s history of releasing titles on both Steam and its own Store. Transitioning users from one platform to another poses considerable challenges. However, Corden tempered expectations on X, noting that the mere possibility of such a shift does not guarantee its execution. “I REALLY doubt they will, but they’re doing something that could potentially give them a window to do so, but there’s just too much money to be left on the table imo,” he remarked, emphasizing the financial implications of abandoning Valve’s storefront.
Future Hardware Considerations
Discussions surrounding Xbox’s operational changes on PC are likely intertwined with the anticipated launch of their next-generation hardware system, known as Xbox Project Helix. This innovative system aims to bridge the divide between console and PC gaming, but it comes at a cost. The projected price point for Project Helix is expected to exceed that of the PlayStation 6, primarily due to the expensive Magnus APU.
Integrating third-party storefronts like Steam, GOG, or the Epic Games Store could significantly impact Xbox’s revenue model, as the 30% cut from each game sold on their platform would be diminished. This reduction in revenue could complicate efforts to subsidize the hardware and maintain a competitive price point.
While these considerations have likely been on the table for some time, the rising costs of components, particularly RAM and NAND storage, add urgency to Xbox’s deliberations. With forecasts indicating that these prices may escalate further in the coming months, the prospect of distancing from Steam, though seemingly unlikely at present, becomes a more tangible topic of discussion within the company.
About the author: Francesco De Meo has been covering video games and technology since 2012, beginning his career at smaller outlets like Gamersyndrome and GeekSnack. After joining Wccftech’s gaming section in 2015, he expanded his coverage with in-depth reporting, interviews with industry luminaries, and major event coverage. Outside of reporting, Francesco enjoys playing video games, spending time with his six cats, and pursuing his passion for music through guitar and drumming in a progressive rock band.
