Phil Spencer greets Valve's Steam Machine amidst rumors of Xbox-PC.

The chief of gaming at Microsoft, Phil Spencer, welcomed the new hardware from Valve in a congratulatory message, following the unveiling of the new Steam Machine, a new Steam Controller, and the Steam Frame virtual reality headset. The Steam Machine is a PC focused on games, designed to be more accessible and with SteamOS, a move that competes directly for space in the living room PC market.

The response from Spencer reflects the multiplatform vision of Xbox, but questions the timing of Valve's announcement in relation to Microsoft's own plans:

“Gaming moves forward when players and developers have more ways to play and create, especially across open platforms. 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 biggest publishers on Steam, we welcome new options for players to access games everywhere. Congratulations on today's announcement,” tweeted Spencer.

The gesture comes amid intense rumors about the next Xbox. Reports from Windows Central indicate that the next console will be a console/PC hybrid running Windows, which would allow users to step out of the Xbox ecosystem to access PlayStation games on Steam, as well as mouse and keyboard games from Battle.net (World of Warcraft) and the Riot launcher.

The Microsoft CEO, Satya Nadella, hinted at this convergence in an interview with TBPN: “We built the console because we wanted to build a better PC that could then perform for gaming. I kind of want to revisit some of that conventional wisdom.” Nadella emphasized that Microsoft's biggest gaming business is Windows, and that the company wants to be a fantastic publisher, present on "all platforms".

The Xbox President, Sarah Bond, also suggested that the next Xbox will be a premium device and expensive, mentioning the ASUS ROG Xbox Ally X handhelds as an indicator of Microsoft's direction: "The next generation console will be a very premium, very high-end, and curated experience. You're starting to see some of the thinking we have in this handheld [ROG Xbox Ally], but I don't want to reveal everything."

Despite the apparent competition with the Steam Machine, Valve's engineers dismissed direct competition in an interview with IGN. Pierre-Loup Griffais stated: "Everything we do is informed by what's happening on the PC gaming side." Yazan Aldehayyat added that the Steam Machine is "just one more option in the existing PC gaming ecosystem." The launch of the Steam Machine is expected in 2026, with a competitive price.

Microsoft applauded Valve's announcement of the Steam Machine (new console, Steam Controller, Steam Frame VR), which competes in the living room PC market. Phil Spencer used the message to reinforce the multiplatform vision of Xbox, amid reports that the next Xbox will be a console/PC hybrid running Windows, which could access PlayStation games on Steam. CEO Satya Nadella and President Sarah Bond indicated that the next console will be a premium device and expensive, aiming to be a curated experience of PC gaming.