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Phil Spencer on Steam Machine: 'As One of the Largest Publishers on Steam We Welcome New Options'

Phil Spencer on Steam Machine: 'As One of the Largest Publishers on Steam We Welcome New Options' - News

by William D'Angelo , posted on 12 November 2025 / 3,070 Views

Microsoft Gaming CEO Phil Spencer in a post on social media commented on the newly announced Steam Machine, Steam Frame VR headset, and Steam Controller from Valve.

He does "welcome new options" for people to access their games library and says Xbox is "one of the largest publishers on Steam."

"Gaming moves forward when players and developers have more ways to play and create, especially across open platforms," said Spencer.

"Expanding access across PC, console, and handheld devices reflects a future built on choice, core values that have guided Xbox's vision from the start. As one of the largest publishers on Steam, we welcome new options for players to access games everywhere. Congrats on today's launch."

Prices for the Steam Machine, Steam Frame VR headset and controllers, and new Steam controller have not been announced. However, the goal is to start shipping them in "early 2026."


A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can follow the author on Bluesky.


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41 Comments
only777 (on 12 November 2025)

Translation:

"Oh shit, we're in trouble now"


But seriously, the big problem with the Xbox-PC Hybrid thing was always going to be that Microsoft would insist that they crowbar Windows into it.
Microsoft wanted to sell a box that would attract Steam users and hopefully push people towards their Xbox App in the process.

This new version of the Steam machine eats most of that potential market up right away.

  • +14
Imaginedvl only777 (on 12 November 2025)

Don't know what kind of translator you are working with but I would change it if I were you...
The specs of this thing are really bad... It is will sell and be successful, but this is not at all what Microsoft is targeting with their new console/PC hybrid.

Not to mention, it will run Windows. Haters may come and pretend that this is a bad thing, but it is not; it is definitely going to be a plus compared to Steam Deck if the new Xbox will have the capabilities that we are assuming it will have. (this is still all based on rumor). Being able to run Windows and virtually ALL game store out there is a huge plus.

I find the Steam Machine cool (and will probably end up buying one as I buy any new stuff coming out); but this is definitely not going to be an issue for Microsoft strategy.

  • +4
HopeMillsHorror only777 (on 12 November 2025)

I think Xbox always knew the Steam Machine was going to launch first...
Pretty sure the next gen xbox running windows idea came from the Steam Console rumors lol

  • +4
Azzanation only777 (on 13 November 2025)

They make the games for Steam which brings in the money, honesty you people need to study buisness

  • +2
only777 Azzanation (on 13 November 2025)

Every million in sales Microsoft generate, 30% of that goes straight to Sony or Valve because they own the sales platforms.

If Microsoft didn't screw up the Xbox console, they could have avoided that. So maybe take your business teachings to them eh?

  • +4
Azzanation only777 (on 15 November 2025)

They will sell even more games across more platforms at 70% which is a bigger growth margin then maintain an extra 30% with overall less sales.

  • 0
only777 Azzanation (on 16 November 2025)

That's great. Maybe Microsoft can finally put an end to their policy of filling 70% of their studios with 2 year temporary workers and avoid another Halo infinite mess.

  • +1
Azzanation only777 (on 24 November 2025)

You sound upset

  • 0
DekutheEvilClown Azzanation (on 13 November 2025)

I think you’re overlooking a key point for why MS would not be thrilled with the steam machine being successful: it runs on SteamOS.

The more people that buy this(and other steamOS products)will mean more developers ensuring proton compatibility or even native Linux versions. There will be a tipping point eventually where it is no longer just a 100% thing that you get windows for your gaming PC.

Windows being the default for gaming is likely way more important to MS than the Xbox brand.

  • +2
Azzanation DekutheEvilClown (on 15 November 2025)

1 thing you failed to research is majority of Steam customers use Windows. SteamOS will never replace a full operating system and anyone that buys a PC with just a gaming OS isnt very smart. Imagine spending thousands on a PC that can only do 1 thing.

The more Steam grows, the more MS will earn from protential sales.

And many fail to understand that these companies all have incites on what others are doing, this isnt a suprise to them. They would have known this and will further utilise Valved hardware to sell software.

  • 0
DekutheEvilClown Azzanation (on 16 November 2025)

You completely missed the point.

100% of steam box users will not be using windows.

More compatibility with Linux means Linux becomes a viable alternative for gaming PCs.

  • +1
Azzanation DekutheEvilClown (on 18 November 2025)

And? MS release games on Steam which is where they make the money.

  • 0
only777 Azzanation (on 16 November 2025)

Are you gaslighting him or did you not understand his comment?

The more popular Steam OS becomes, the LESS reliant Valve are on Windows.

Eventually there is a tipping point where Steam OS users overtake Windows Steam users.

This device just accelerates gaming towards that point.

  • +1
Azzanation only777 (on 18 November 2025)

Steam OS will never replace Windows for gaming. Majority of PC gamers dont own Steam dedicated hardware and never will. Desktops and Laptops will remain the primary gaming method for PC gaming.

Valve can make whatever hardware they like, and all MS have to do is release software on it and make money off the competitions efforts.

You need to expand your buisness sense.
I am also a huge Valve fan, but I say it how I see it.

  • 0
DekutheEvilClown Azzanation (on 19 November 2025)

SteamOS is Linux. Linux can definitely be a suitable replacement for windows if software compatibility reaches close to 100%

  • 0
Azzanation DekutheEvilClown (on 21 November 2025)

It will never happen. No buisness, casual, or even PC users use Linux as a primary OS. Its wishful thinking but I am sorry to break it to you.

  • 0
DekutheEvilClown Azzanation (on 22 November 2025)

Almost every single person would use Linux if software compatibility was 100%, what world do you live in? You know Linux is free and windows home is like $100, right?

  • 0
Azzanation DekutheEvilClown (on 23 November 2025)

Does not matter. Its brand power. Windows and Mac will always be the primary choices for OS. The services and features they provide is too much to lose.
PCs are also much more powerful, it doesnt matter if Windows is alittle more heavier to run.

  • 0
DekutheEvilClown Azzanation (on 23 November 2025)

PCs are more powerful? You know you can just install Linux on any PC, right? It's the exact same PC but you save the windows registration fee. I don't think you're getting this.

PC gamers buy windows because they have to, not because they want to. No one who uses their PC solely for gaming is buying windows if 100% of software has Linux compatibility. They're buying the same gaming PC and just skipping the windows pre-install and saving $100.

  • 0
Azzanation DekutheEvilClown (on 24 November 2025)

Brother, anyone with a brain who is willing to invest into PC gaming will add Windows for the small extra fee because a Windows PC is just a much better overall PC with everything built in. If you feel the need to save a puny $100 then then have to download everything separately suit yourself.

I recently upgraded my Rig to.a 9060XT and added Windows 11 and the PC runs like a dream plus i have all for benefits outside of gaming also.

  • 0
DekutheEvilClown Azzanation (on 24 November 2025)

Jesus Christ, you’re an idiot. I don’t think you even know what an operating system does.

  • 0
Azzanation DekutheEvilClown (on 27 November 2025)

Message me when Linux has replaced Windows or Mac.

  • 0
leftalone only777 (on 13 November 2025)

It's more like "Oh shit, they wont buy us Windows licences ! At least we sell our games on Steam."

  • +2
G2ThaUNiT (on 12 November 2025)

Valve literally beat Xbox to the punch with their long-term plans lol. I've been saying for a while that Valve is a bigger direct competitor now to Xbox than PlayStation or Nintendo is at this point.

Valve though feels like they have a truly unified ecosystem, all stemming from SteamOS across multiple kinds of devices that third-party OEM's will then be able to modify and sell as well, while still running a juggernaut of a storefront on Microsoft's own OS lol. If there was ever a time where Valve could go after Microsoft's jugular, it's now! And as per usual, Microsoft is still trying to play catch up. Everything they're doing either feels like it's a huge WIP that is still years away from materializing or is still years away from being shown/announced.

  • +7
HopeMillsHorror G2ThaUNiT (on 12 November 2025)

That was always going to happen lol
The Steam Console has been rumored for years now

  • +1
Pemalite HopeMillsHorror (on 12 November 2025)

The "Steam Console" released almost a decade ago in 2015 and ran SteamOS.

This is an update to that. That's right, this is not Valves first attempt.

...But once Microsoft saw the success of Steamdeck, that made them take notice, this is not a war over hardware anymore, this is a war of Operating Systems... And one aspect that has kept Windows relevant on PC was... Gaming.
Windows is still a huge cash cow for Microsoft, they don't want to make the same mistake they made with Windows CE/Phone and Android.

  • +2
JackHandy G2ThaUNiT (on 12 November 2025)

Sony and Nintendo are only competitors via software. Xbox is out of the hardware business. They just haven't announced it yet.

  • +2
jsowers (on 12 November 2025)

Valve seems to have leapfrogged Microsoft's plans. But it's not entirely unhelpful. It will give them a test case for a PC/Console hybrid in the market and inform their strategy.

  • +4
Azzanation jsowers (on 13 November 2025)

I dont think MS care, the more Steam users, the higher the protential sales of their games

  • +2
jsowers Azzanation (on 13 November 2025)

Totally, more and more their hardware footprint becomes irrelevant.

  • +1
Azzanation jsowers (on 15 November 2025)

Dedicated Hardware in general is becoming more irrelevant.

  • 0
only777 Azzanation (on 16 November 2025)

Only Sony is seeing growth in the Cloud gaming sector thanks to it's Portal device; and even they are looking at single digits.

  • +1
Azzanation only777 (on 18 November 2025)

Meanwhile Sony are building a PS app on PCs and Mobiles.. guess PS hardware is growing that much.

Sony can only increase the prices so many times to increase revenue, it comes a time when they simply need to see more hardware and software overall.

  • 0
only777 Azzanation (on 19 November 2025)

What? They are discounting $100 off for black friday!

  • 0
Azzanation only777 (on 21 November 2025)

Is that a serious reply?

  • 0
LivncA_Dis3 (on 15 November 2025)

How is he still keeping his job?
My mind blown

  • +2
martin_zanza (on 13 November 2025)

Dead Man Walking

  • +2
UnderwaterFunktown (on 13 November 2025)

"As someone who has bought some of the largest publishers on Steam"

  • +2
2zosteven (on 12 November 2025)

this guy has an answer for everything..............................

  • +2
KLAMarine 2zosteven (on 12 November 2025)

It's sort of his job... Gotta have a response to all things happening in his industry.

  • +1
SanAndreasX 2zosteven (on 12 November 2025)

Yeah. Another load of corpo BS from Microsoft's resident fertilizer salesman.

  • +4