Valve just built the Xbox of Microsoft’s dreams

Valve has created a PC-based gaming console that sits underneath your TV. the Steam machine It takes everything that was great about the Steam Deck and adds raw power to compete with the latest PlayStation and Xbox consoles. It also puts a lot of pressure on Microsoft to improve its Windows and Xbox lineup, as the Steam Machine brings Windows gaming into the living room in a way Microsoft dreamed of for its next-gen hardware.

The Steam Machine looks like an Xbox Series The 6-inch cube runs Windows PC games through Valve’s Linux-based SteamOS operating system, and should have enough power through the two AMD chips to deliver performance close to an Xbox Series Inside, all of the Steam Machine’s components are compact in a similar way to the Xbox Series

Aside from the hardware, it’s the SteamOS operating system that makes the Steam Machine a strong competitor to the Xbox and PS5. Valve failed to make Steam Machines a reality a decade ago, largely because developers had to port their games to Linux so they could run them. Valve’s new Steam Machine uses the excellent Proton compatibility layer, which allows most Windows PC games to run smoothly on the Steam Deck and often better than they do on equivalent Windows portable hardware.

Even though the Steam Machine is a single device and Valve hasn’t announced OEM plans at the moment, I still think it poses a significant threat to Microsoft’s next-gen Xbox plans – and perhaps even to Windows PC gaming.

It’s no secret that Microsoft is working on this Combine the best parts of Xbox and Windows For next-gen consoles, that means more PC-like hardware and software, just like the Steam Machine. Xbox Ally laptops from Asus Here’s an early look at the direction Microsoft is headed in terms of Xbox consoles, with Windows at the heart and the Xbox UI at the top.

Microsoft’s combination of Windows and Xbox appears to be a beta version at the moment, shipping on a $1,000 device. Microsoft has effectively switched the Xbox PC app to Steam’s big picture mode and suppressed some annoying parts of Windows so they’re hidden away. It’s very early days to see Microsoft here, and I personally feel like it was implemented too early. The Windows and Xbox teams have a lot of work to do to improve the full-screen experience for Xbox and hide the complexities of Windows away. Valve’s Steam Machine is now turning up the pressure on Microsoft to fully execute on its vision.

This pressure will only increase if Valve can convince other PC OEMs to build Steam hardware in the future, just as it expanded SteamOS to Windows mobile devices. As Microsoft works on its next-generation Xbox hardware, sources tell me it also wants OEMs to build future Xbox-branded hardware just like Asus did with Xbox Ally. This puts Microsoft and Valve on an even bigger collision course.

Both Microsoft and Valve are trying to appeal to similar audiences, gamers who are interested in PC gaming but want a simplified, console-like experience, or those who are already PC gamers and want a reliable living room option that plays all the games they’ve already purchased.

The challenge for Microsoft is that Valve has already refined SteamOS into an easy-to-control operating system, with a store interface that dominates PC gaming. All the pieces are ready to go on a Steam console as Microsoft builds the next generation of Xbox with a mix of Windows and Xbox and offline. Closed to one store. The next Xbox now looks set to embrace rival stores like Steam to entice people, but Microsoft still faces the massive hurdle of convincing people to actually buy games from its PC store rather than just buying them on Steam.

Microsoft will no doubt rely on Xbox’s great cloud saves and Xbox Play Anywhere support as part of its strength to fight Valve’s Steam Machine, but with SteamOS now available across consoles and mobile devices, it reduces Microsoft’s cross-device effort. PC Game Pass is still exclusive to Windows, so Microsoft’s subscription service will play a big role in helping its next-gen hardware stand out. Microsoft also has a big advantage in games like fortnite, Valuation, Battlefield 6and other multiplayer games that run smoothly on Xbox, while they don’t on SteamOS due to their complex anti-cheat systems.

Pricing will also be a big factor in Xbox + Windows vs. Steam Machine. Valve hasn’t finalized pricing yet, but says “Steam Machine pricing is comparable to a PC with similar specifications.” This seems more expensive than the supported console, at a time when both Microsoft and Sony are raising console prices beyond the norm. Microsoft also hints The next-gen Xbox will be a “very premium, cutting-edge experience,” so expect more PC-like pricing for these consoles as well.

As the Steam Machine brings a simplified form of PC gaming to the living room, it also threatens to shine a greater spotlight on Windows performance issues and the direction Microsoft is taking with its operating system. SteamOS has outperformed Windows in a variety of titles already, prompting some PC gamers to take a closer look at Linux for the first time. Combined with the intense dislike of Microsoft’s direction with Windows from the PC gaming community, the Steam Machine should serve as a wake-up call for Microsoft to focus on performance and gaming instead of pushing Copilot buttons everywhere.

The Steam Machine now seems like a well-timed response to the Windows gaming struggles Microsoft has had over the years, and an effort that’s been a long time coming. Valve originally tried to put a box in everyone’s living room with its “Steam Box” effort over a decade ago. I still remember encouraging my colleague TC Sottek to chase Gabe Newell At CES 2013. CEO of Valve He sat with us For a rare and wide-ranging interview about the future of vaporizers and steam machines. A lot of what Valve was trying to do with the original Steam Box seemed like a reaction to Windows 8 and Newell Even described it The decision to release Valve games on Linux as a “hedging strategy” against Microsoft. He also called Windows 8 a “huge sadness” at the time, explaining that Valve had been frustrated with Microsoft’s direction with Windows for more than a decade.

It now appears that Valve’s hedging strategy could realize the dream of a PC in the living room that Microsoft has been chasing for decades — from Windows Media Center to the big push for the Xbox One with Windows underneath. Except it’s not Windows in the living room, it’s Linux.

You’d think this would set off alarm bells at Microsoft. Instead, the CEO of Microsoft Gaming Phil Spencer He was positive about Valve’s announcement during an all-hands meeting with Xbox employees yesterday. Him too Published on X To congratulate Valve.

“Expanding access across PC, consoles and mobile devices reflects a future built on choice and the core values ​​that have guided the vision of Xbox from the beginning,” said Spencer. “As one of the largest publishers on Steam, we welcome new options for players to access games everywhere.”

Microsoft is convinced its path to the next Xbox is the right one, but now it has to compete with Steam on its own living room turf to make the PC-like gaming console a reality. Run the game.

What happens to the Windows Insider Program?

In recent weeks, the faces behind Microsoft’s Windows Insider program announced they were moving forward. Brandon LeBlanc, Amanda Langowskiand Jason Howard They’ve all moved into separate roles within Microsoft, and it’s not clear who will replace them yet.

Microsoft assures me that there are “no changes to the Windows Insider program,” even though all three roles are suddenly transitioning at the same time. “As we hire to fill these roles, the Insider Program will be led by Alec Ott, lead group, product manager, Windows Service and Delivery,” says Chris Morrissey, senior director of communications for Windows Service and Delivery. “We’re committed to listening and learning from our insiders, and continuing the cadence of our blog posts as we develop new experiences every week.”

The current Windows Preview build blog posts are not named, and I wonder if they will all be written by AI agents in the future. Blog posts about new Windows features seem like an easy target for Microsoft’s AI push internally. Either way, I hope Microsoft continues to listen to Windows feedback through its Insider Program, especially since it was introduced just as Windows 10 fixed Windows 8 bugs.

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