XBOX is currently navigating an internal restructuring that has already led to significant layoffs, studio closures, and change in priorities. Now, according to a highly reliable source, the company may be considering stepping away from Steam, the largest and most influential digital storefront on PC.

The report comes from Jez Corden, a journalist with a proven track record for accurate industry leaks. However, the Windows Central editor has urged readers to approach the information with a degree of caution, as he himself remains skeptical that Microsoft would ultimately follow through.

XBOX Could Abandon Steam, According to Jez Corden

Microsoft’s recent multiplatform push, which saw numerous first-party XBOX titles released on PlayStation and Nintendo systems, divided the community. In response, the company has signaled a partial retreat from that strategy, with plans to reintroduce exclusivity in certain areas. According to Corden, that shift may extend to the PC space as well.

While Microsoft currently maintains a presence on PC through the Microsoft Store and Blizzard.net, it continues to release its major first-party titles on Steam, including games such as Gears of War: Reloaded, Forza Horizon 6, Halo: Campaign Evolved. But that arrangement may not last.

During an appearance on the Xbox Two podcast, Corden revealed that Microsoft is actively reevaluating its PC distribution model and has discussed the possibility of exiting Steam entirely.

“Microsoft has some plans with regards to how they show up on PC,” Corden said. “The plans that I know about, and I’ve got to be careful here, plans suggest it gives them a window to potentially pull out of Steam.”

He later tempered those remarks on social media, emphasizing that such a move would likely come at a significant financial cost. Abandoning Steam, he noted, would mean giving up on substantial revenue.

It is unlikely players are willing to go over to the Microsoft Store or another platform. In 2023, Microsoft itself acknowledged in legal filings that its decision to make Call of Duty exclusive to Battle.net had been a “complete failure.”

Steam XBOX

Project Helix, XBOX’s Upcoming Console, Will Be a Desktop Console

The podcast discussion also touched on a possible connection between this strategic contemplation and Project Helix, Microsoft’s upcoming desktop console. Shortly after assuming leadership of the XBOX brand, Asha Sharma unveiled the first official glimpse of the new hardware.

If Microsoft does intend to create a more tightly controlled ecosystem that excludes third-party storefronts like Steam, GOG, or the Epic Games Store, stopping Steam releases could also occur.

It should be noted that Microsoft has not publicly committed to leaving Steam in either the current or next console generation.

The only confirmed detail is that the company continues to deliberate over how it will handle exclusive console releases moving forward. Some executives have suggested that major single-player titles could remain exclusive to XBOX Series X|S, while online multiplayer games might launch across several platforms. However, there have been conflicting statements regarding this issue.

Do you think Microsoft will be making a mistake by abandoning Steam in favor of the Microsoft Store or Blizzard.net? Share your thoughts in the comments below.

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