It’s highly likely that the upcoming Xbox console will incorporate Steam functionality, as Microsoft is planning to revert back to its initial “living room PC” approach, which was a key feature of the original Xbox.
For several years, former Microsoft employees have been subtly suggesting that their ultimate goal for Xbox is to unify the user bases of both Windows PC and Xbox into one integrated platform. This move aims to enhance the living room functionality of Windows, while merging development environments to make content distribution more efficient. However, realizing this vision is a colossal undertaking. As it stands, current Windows 11 systems are not equipped to function optimally on a TV, from a couch, or with an Xbox controller.
Transforming Windows for seamless “it just works” console gaming demands a high level of competence that should not be overlooked, yet its potential is undeniably clear. Such a system would allow for the downloading of mods, running Steam games, using third-party launchers like the Riot Client or HoYoverse launcher, access to full-featured Windows tools, VPNs, accessories, and more – all while being suitable for living room use. Essentially, it’s a dream setup for gamers, resembling something of a gaming grail. If you’re not a traditional console gamer, having an Xbox as a companion computer in your living room could become a realistic choice when the Xbox Gen 10 launches, which is expected to happen around 2027.
For longtime Xbox users, this move may bridge an expanding content disparity that Microsoft has contributed to, by deciding to release Xbox exclusive games on PlayStations last year. Consequently, PlayStation and PC gamers now have access to a more diverse selection of games compared to Xbox Series X|S loyalists, which includes Sony’s exclusives like Helldivers 2, God of War, and The Last of Us.
But, the next Xbox could change that.
Last week, a sneak peek of Microsoft integrating Steam into its Xbox PC app was accidentally shared in a graphic, which later got removed when media outlets started noticing and inquiring about the small “Steam” button seen on the filter list.
Indeed, while the Xbox Game Bar on your PC can identify Steam games on your system, it may not provide an optimal experience for launching games using a controller. However, Microsoft is actively addressing these concerns to offer users more flexibility in choosing their preferred storefronts, all while maintaining the quality and smoothness of the overall system.
From my perspective as an analyst, it’s clear that many Xbox enthusiasts are pondering whether this move by Microsoft will bridge the content gap issue. With popular titles like Forza, Indiana Jones, and possibly Halo transitioning to PlayStation, the prospect of games such as God of War or Helldivers 2 arriving on Xbox seems unlikely at best. However, with the next-gen Xbox consoles, in theory, they could run those PlayStation games via Steam, offering a potential solution for this content disparity.
It’s unclear if Sony (the maker of PlayStation) plans to prevent their games from being played on Xbox consoles.

As a tech enthusiast, I can’t help but express my concerns about a potential shift in Steam’s policies. Introducing per-OEM content hardware restrictions could open a Pandora’s box of complications. In theory, it might allow OEMs to secure exclusive rights to PC games for their specific systems, leading to a fragmented gaming landscape with an array of new Digital Rights Management (DRM) mechanisms that may cause more issues than solutions.
Just like Denuvo and similar technologies, the practical enforceability of such restrictions is unclear, making it difficult to predict how this would play out in reality. In essence, we’re treading on uncertain ground here, and I believe it’s important to approach any changes with caution.
As a researcher, I can confidently state that Sony does not restrict its games from running on Microsoft Surface laptops, suggesting that the next iteration of Xbox might follow this approach. While it would be an uncharacteristically petty move, one that I find unlikely for Sony to undertake, I’ve learned through my discussions with industry insiders that Microsoft has at least contemplated such a possibility.
With NVIDIA GeForce Now, gamers can sign into their Steam account on a computer that isn’t their own, but they don’t get full access to their Steam library. Even though those remote computers could provide complete access, the game publishers have imposed restrictions on which games can be played on these machines on a title-by-title basis. This situation is somewhat similar, although not identical, to how some license holders control how their games are played through Steam.
Essentially, what I mentioned earlier remains valid: there’s no prior example I could locate that closely resembles Microsoft’s approach for the next Xbox. However, it seems they might be introducing a device that functions as a Windows-compatible, TV-friendly, subsidized, and affordable gaming PC, with an Xbox controller-oriented design. This could potentially be the most alluring video game console in years. To date, only Valve’s Steam Deck connected to a TV through a Steam Deck dock has come close, although it does have some performance limitations.
If the reported plans for Xbox materialize, they could potentially create something extraordinarily unique. Admittedly, it seems extremely improbable, but there’s a slim chance of surprise maneuvers by game publishers and digital stores as the events unfold.
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2025-03-27 20:39