Negotiations Underway: Microsoft and Valve Eye Steam Integration for Next-Gen Xbox

A year ago, the head of Microsoft’s gaming division, Phil Spencer, expressed his willingness to consider allowing PC storefronts like the Epic Games Store on Xbox consoles. According to journalist Jez Corden from Windows Central, this wasn’t just talk—the company is indeed in discussions with the owners of such platforms.

Corden’s sources indicate that Microsoft is also engaging with Valve to potentially bring Steam to the next-generation Xbox console. The details of how this partnership could unfold remain unclear, as specifics of the negotiations have not been disclosed. There are also rumors that a full integration of these services is currently being tested, though Corden urges caution regarding the credence of these claims.

Previous reports by Corden suggest that the next Xbox may not take the form of a traditional console. It is scheduled for release in 2027 and is expected to be more accommodating to PC game versions—whether through native support or via an emulator layer.

Even if this is true, it’s somewhat puzzling why Microsoft is eager to invite other storefronts to Xbox, as this could significantly impact its own Microsoft Store, which charges developers a commission. Nonetheless, there are potential benefits, such as enabling the play of Sony games on Xbox through their PC ports. Moreover, we shouldn’t overlook the possible support for Steam’s workshop features.

This strategy might be part of a broader plan to create a unified ecosystem with a portable PC from Microsoft. Corden reminded that the corporation is still actively working on such a device.