Is Xbox Acquiring Steam?

Because of how often I use Steam, it has become my primary resource for amassing a collection of video games. There just does not seem to be a more ideal location for my collection to expand. If I were to be completely blunt about it, Xbox simply does not hold a candle to Steam.

The last year has been somewhat peculiar, particularly for Xbox. Both internally and internationally, they have been undergoing some significant changes. Team Xbox no longer appears to have full power; at this point, it feels more like Microsoft is controlling the game. That explains why they have made judgments that seem very different from their previous actions.

Whenever you discuss Xbox's future, you have to question its direction in light of its newest, more multi-platform strategy. We do have a few clues, however. A next-generation console with unprecedented processing capability is reportedly in the works for a late 2026 release. A portable version might also be in production.

The question now is how the consoles will be sold. We have heard rumors that they will collaborate with Valve to bring Steam to consoles. What if, instead of a basic collaboration, this turns out to be an acquisition? Well, word got out on social media.

A tweet by @xDiorCS ignited everything. The source claimed that Microsoft was planning a cash offer of $16 billion to acquire Valve, which has a valuation of about $80 billion. People's reactions to this rumor ranged from mild enthusiasm to outright alarm.

All things considered, Valve is a well-liked operation. Plus, I have to admit that, out of all the gaming companies, their storefront is the greatest. There is a reason why people like Steam more, and there is also an explanation for why it is by far the most popular PC gaming platform. When you stop to consider it, they have created a fantastic PC medium for games, while Microsoft has, looking back, had a lot of trouble with this.

Microsoft may be known as the Windows manufacturer, but they have never really cracked the code to PC gaming. While it is true that Microsoft has made strides in recent years, a significant contributor is that Xbox has finally given up attempting to sell its games via its own shop. They have now shifted their focus to releasing all their games on Steam, where they are far more successful. With that in mind, I can confidently state that Valve is more adept at PC gaming.

There have been whispers that Steam will be part of the next Xbox, which adds to this story's intrigue. The general public's opinion on such a rumor has been very divided. If it happened, I believe a lot more console units would be sold, and Xbox would see an increase in sales. However, there have been some concerns about how that would influence their storefront.

The obvious question is, since Steam is supposedly better for Windows users, why use the Xbox store at all? Looking at it that way, it seems like they would be somewhat hurting themselves unless they have a huge deal with Valve where they get a percentage of all sales or if they just own them. Furthermore, I believe the first question we must address with this purchase is whether or not any of the above is even feasible.

I guess what I am trying to say is that there are certain ways in which I see the Valve ecosystem fitting in with Xbox's larger goals. Xbox has been interested in Valve in the past, that much we know; some Microsoft internal emails were leaked to the FTC last year and indicated that, given the chance, Xbox would be interested in partnering with Valve and Nintendo. They assessed Valve's value at $6.5 billion back then, but there are still huge obstacles to a purchase of this scale, regardless of desire.

To begin with, is Valve Corporation's co-founder and main shareholder, Gabe Newell, even interested in selling? @xDiorCS pointed out that Gabe does not really hold that many shares, contrary to popular belief. As shocking as it appears, it turns out to be less than 25%. That would imply that he is not the one who gets the bigger say.

Putting that aside, I believe that dealing with regulators would be Microsoft's next major obstacle. What transpired with Activision Blizzard in the last several years was visible to us. There were issues with the purchase of both the FTC and the CMA. Even if I believe the authorities overstepped their authority in some respects, I believe it would be far more difficult for Microsoft to get past regulators in the case of Valve.

My reasoning for stating this is that if Microsoft were to possess Steam—the most popular PC storefront—in addition to the Microsoft Store and Activision Blizzard, they would have a formidable gaming empire. Although Steam's competitors, such as Epic Games, exist, this may prove to be a significant challenge for authorities due to Steam's massive user base and widespread acceptance.

The figures show that Xbox has grown into a gaming powerhouse. As far as profits go, they may as well be considered on par with PlayStation. Honestly, I neither want nor expect the acquisition to happen. Putting Steam on Xbox platforms would be a huge boon for Xbox players; I can understand that.

Having said that, Steam is already an amazing platform in its current state. Except for PC Game Pass, I cannot imagine Microsoft as having anything to offer that may enhance Steam as of now. Thus, cooperation, rather than an acquisition, seems more plausible between Xbox and Valve.