Talking Point: What Does The 'Steam Machine' Mean For Xbox's Next-Gen Console Plans?

I have no interest in this, I am not a PC gamer and I don't own any Steam games so this is a hard pass for me.

The thing that people keep forgetting when it comes to the next Xbox is that it is going to natively play Xbox games, unlike the Steam Machine or any other gaming PC out there.

It seems that the next Xbox isn't only going to be a run-of-the-mill gaming rig that runs Windows, it's also going to be an actual console, given that it will be able to play titles that a regular PC can't.

It will cost a lot more than the Steam Machine, but that will be the next Xbox's biggest differentiator.

This model doesn’t pose any threat to rumoured future Xbox because of the limited hardware, but a hypothetical more powerful version really could bring the heat to Microsoft.

I've built up a decent library for the deck so yeah, definitely interested

@Questionable_Duck my xbox SX plays my xbox games, my ps will play any new xbox games, this will let me play my steam library (mainly indies) on the tv. I see zero reason for me to buy a new xbox.

Lets not forget, there will be no next gen 'xbox' games. They will all just be pc versions.

I think that PlayStation and Nintendo are the two big losers here; their current business model seems obsolete.

To a certain extent, I think Xbox's vision is reinforced by the concept of an open hardware ecosystem, validating its commitment. However, I believe that Microsoft should be concerned about Windows, as one of the pillars of its OS is gaming, and it may be under pressure for the first time in a long time.

I think there are a few things to consider with this Steam Machine launch -
1. Just like Legion Go S, there will likely be more powerful Steam Machines from Lenovo, ASUS, etc. and this is simply the most affordable SteamOS based gaming PC.
2. SteamOS is simply a better and more mature PC OS for gaming. And unless Microsoft heavily invests in Windows optimization (outside of what Xbox is doing), the next Xbox will simply launch with an inferior OS. (Note that Sarah Bond indirectly announced in the Xbox-AMD partnership that the next Xbox will run Windows and not XboxOS)
3. Given the specs they announced, the Steam Machine will be more affordable than the next Xbox (especially since Steam is subsidizing it, unlike what Xbox plans to do).
4. Steam Machine will likely become the lowest denominator for the future of PC gaming, just like Steam Deck is for handhelds.
5. Given the current pricing structure of GamePass tiers, the only reasons not to consider the Steam Machine and the SteamOS for your future gaming are the live service games (Call of Duty, etc.) and Xbox PC games.
6. Hypothetically speaking, since it is RDNA3 based, it would be an eligible option (but only) if Xbox were to open up their backwards compatibility solution. Xbox might still enforce Windows to run their backwards compatibility solution, which will require dual-booting the Steam Machine. However, if this happens, the Steam Machine will likely only be able to run Series S games.
7. Since Steam is heavily investing in hardware, this will influence game businesses to come up with anti-cheat solutions for Linux, although this can still take years to come to fruition.

@Weebleman yeah it’s a good point you make. Microsoft need to tread carefully, because having Xbox digital libraries isn’t the impenetrable barrier to switching platforms as Phil Spencer once said it was. We saw how many gamers switched from away Xbox to PlayStation and/or PC this generation regardless of existing libraries. And Game Pass has probably resulted in Xbox gamers building up libraries at a slower rate than in previous generations too.

Personally I’d much prefer having everything in one box for simplicity and minimalism, so that rumoured Xbox still has huge appeal to me. My loyalty to Xbox is not set in stone though. If Valve put out an upgraded Steam Machine that’s competitive with the next Xbox in hardware specs I will be paying very close attention!

Massive half life everything fan here so still just Desperate to play half life alyx for the passed 5 years without spending like £1200-£1500.

Looks like, after months of anticipation from me, the steam frame won't do it on its own so not interested.

I don’t have pc and see so many games I’m interested in on steam and then the sales they have. This is exactly what I’m interested in. Will mainly play indies so hoping the price spec is decent. Think I’ll be getting this in the new year

@brettvsgodzilla the sales are ridiculous and you should check out humble bundles game bundles, amazing value

@Cakefish The price of this thing will be the big decider for me. As I say, I mainly use steam for indies so I dont need a powerful, high end machine to benefit from them. This would be a great side box to a new PS as it will cover everything for me personally.

I also mentioned in another chat that xbox games as we know them wont really be a thing next gen as they will just be the PC versions. Companies like Rockstar release these versions much later than a standard console version. How will this impact the next box as it will rely on PC releases for them, rather than a straight console port.

@Weebleman The next Xbox will probably be able to play your Steam library too, as well as your Xbox library. The Steam Machine can't play any of your Xbox games, and to make matters worse, it's weaker than a 5-year-old Series X.

Of course, however, the value of the next-gen Xbox and the Steam Machine varies depending on how many games you own on Xbox and Steam, respectively. If you own very few Xbox games and are only interested in playing indie titles on Steam, then sure, the Steam Machine would make more sense for you. But if you want to play all of your non-Nintendo games in one place, and are willing to spend more money on hardware, then the next Xbox makes the most sense.

Thing is, I'm not so sure about the "there being no next-gen Xbox games" part. There's a good chance that the next Xbox will still have its own developer kit, and that companies will have to make native ports for it in order to put games on the Microsoft Store. The next Xbox won't just be a PC with an Xbox logo on it; apparently, it's going to have a custom AMD chipset that will allow it to run Xbox games. Because of that, I still think ports will still be a thing.

@Questionable_Duck but my SX will play my xbox library. So thats covered. If the steam box is cheaper I will get that and still access everything.

Why would a developer put money into developing an xbox port for a machine that operates on windows, steam, etc... It will literally just be a PC version. There will be no xbox operating system. Same as the ally. It will be an app that looks like xbox playing PC versions. While I fully imagine it will be completley back compatible, it will be windows gaming. There will be no xbox port as there wont be an xbox os. If its its next gen only it will be via windows os, cross gen games aside with back compatibility playing the 'last gen' xbox version.

I don't think xbox is concerned at all. Yet another place to buy and play their games. Get gamepass working on steam and they should be all good.

The real victory is the death of the term "console exclusive." That era is truly behind us. Good riddance.

Im definitely getting one of these. Probably going to tinker around with it and try windows on it.

I've no interest in playing PC games. So this doesn't interest me. Think this is more of an issue for MS than Sony. So far going into the next gen it seems that the Xbox main selling point was going to be access to steam. Unlike Sony, MS needs to do something to expand their player base. So I don't see why Sony would want or need to try and copy MS on steam access. It would obviously destroy their console eco system. They make loads from selling games on their digital store. Why would they want to lose that when they don't need to?

I want to be clear in my answer, I HAVE ZERO INTEREST IN THIS. Not enough power, and the controller looks like trash!! I do think Steam is great for PC, i understand its popularity and importance in the PC space. But the next Xbox Spec wise will eat this device alive and before i hear but but the price. Well this is a hobby with different price points for a reason. I have the money to be a 5080 gamer so why would i buy a 3070? I wanted this device to be powerful and have a great controller etc etc. but what was shown is a HARD NO for me!! Next Gen Xbox and maybe PS6, i have bought every PS, but lately i play less and less titles from Sony and i have never loved a PS controller in my life. I use them, but like them? Not a chance.

I'm really interested, just want to know the price for the 512GB model.

@Weebleman If it's gonna be backwards compatible, then it's gonna require a custom Windows-based OS of some kind. Unless there's just gonna be an Xbox emulation app that's pre-installed on all consoles or something.

Personally, I'd rather play everything in one place rather than separate my library between two devices. Plus, you get the added benefit of being able to play next-gen PS6 games that you wouldn't be able to play on Series X or the Steam Machine. As well as being able to play existing Series X games at a better framerate/resolution.

As for why developers would put their games on the Microsoft Store, I think the answer is simple: they'll get a bigger cut by putting their games on Xbox instead of Steam. Microsoft Store is still going to be front and center on the next Xbox, and it will likely remain the storefront that most existing Xbox owners buy their games on, for the same reason that most PC gamers prefer to have all their games on one storefront rather than spreading them out across various platforms. I could be wrong, but I don't think Steam and other PC storefronts will as be easily accessible as people think they'll be.

I'm waiting for Microsoft to reveal details on the next-gen Xbox, before I even consider one of these. Nonetheless, whatever I'll be purchasing / going with, it won't be the traditional walled garden console model. I do like the form factor of this though.

@wittedbugle "No one who already plays on a PC will give up on their own rig for a Microsoft machine if they can have a Steam one or simply upgrade their setup."

The thing is, you could make the same argument for the Steam Machine, as well.

No one who already plays on a PC will give up their own rig for a Valve machine if they can simply upgrade their setup.

Considering that it's weaker than a Series X and can't play certain multiplayer games like Fortnite and GTA Online due to running on Linux, how much of an audience will the Steam Machine really have? I mean, it only really appeals to people with garbage PCs who are looking for an affordable gaming rig, or people who have never been into PC gaming at all. Gamers who are heavily invested into Steam and PC gaming likely have great PCs already, meaning that there's little reason for them to get a Steam Machine.

Time this goes on sale, my PC will be a year old, and the Steam Machine will still be a much lower spec, and the PC isn't a top of the range beast as it is.

I reckon it'll release for £550.

@wittedbugle I see then, lol. You're right that most people will not look at the next Xbox as a first option, in that regard. But at the same time, let's be honest: most people haven't been looking Xbox as a first option in over a decade. I don't think Microsoft cares, considering they're doing everything in their power to make the current Series X/S unappealing to newcomers.

Then again, you could say the same thing for Valve and the Steam Machine as well. They probably don't care that their device doesn't have mass market appeal, either. Hmm...

At the end of the day, I think it's clear that the Steam Machine and the next Xbox are being specifically designed to target niche audiences, not mainstream markets. But for me personally, being able to play all Xbox and PC games on one device is a bigger selling point than "affordable gaming PC."

Great move for Valve. Biggest loser is Microsoft!! They got beat to the punch!!!

Welcome to 2020... With the steam machine being weaker than both PS5 & Series X, it does not appeal to me. Seems like a step backwards. Although it does seem like it validates Microsoft NextBox strategy.

@Questionable_Duck emulation is entirely possible, they did it with the X/S. Although I would highlight that nobody at MS has said the word native yet. Back compat, yes, but no mention of if it will be native.

In terms of PS6 games, I imagine they will release on PC at a later date, which is fine, but I dont see everything day and date. Plus it wont have my PS library. Im not fussed about things in one place. Im old enough to have many a day swapping scart leads over to play another console. Picking up another pad and switching hdmi's is a breeze 😂.

I do agree windows store will be front and centre but, judging from the premium foreshadowing, I imagine that most folks picking the next xbox up will know all to well how to put steam on it. They will also know games are much cheaper on steam, cutting MS and their 30% out all together.

There is zero chance developers will skip steam, regardless of the cut MS offer. The only ones that will are possibly MS, but as they're releasing everywhere, why would they.

All of this is theoretical of course, only time will tell, but I get a feeling this isnt gonna be what folks think.

If it's underpowered compared to the series x theres no point if you want to have the console experience but it's a dip of the toe into what next gen seems to be about??
The only issues for me is the controller I want physical anolog not a sensor!

@Gabrie that's the most unrealistic fanboy comment I've seen here. PS5 has sold 85 millions, but Sony is the loser here because Steam will release a niche PC console.

It means nothing - MS has its OWN 'Xbox' Community, History and Library of games on both PC and Console gaming platforms. If they 'merge' that into the 'PC@ Platform, bringing their 'Console' History (at least all the games, inc BC Games, playable on Series Hardware) forward.

Your Xbox Profile/Achievements/Friends etc are on both and your digital licences are on both so hopefully they find some way to enable you to play the 'console' version via some Back Compat layer.

Just bringing your History forward is a big incentive - especially if you have no or little history with other Platforms. The Steam Machine seems more for those with Steamdecks and want a cheap 'console' to rival PS5/Xbox for the TV space or for those that maybe want to get into Steam but don't want a 'PC' and the Cost of buying a 'decent' PC Rig.

If the next Xbox is PC based, brings your Xbox Library forward (not just your Play Anywhere Library) and runs games better (as well as maybe enjoy Game Pass as a Service), there are many that will prefer to stick with Xbox and maybe start building up a Steam Library there for the games you can't play on Xbox - inc Playstation games.

Game Pass maybe an incentive to some - especially with rising costs and its not 'just' MS's releases you get to play - and whether or not Valve sort out some of the issues with Games not working on 'SteamOS' as they require Windows TPM Secure Boot can all play a part.

Already have gaming laptop so as much as I think this looks cool with the console design and being able to play steam games, I don’t see much benefit for me to be honest.

The appeal of the next Xbox is in being able to play Xbox games AND Steam games from the comfort of my couch. Unless the new Steam machine can properly compete (and it's not likely to) then pass

Given that most xbox games are coming to other platforms now, I would guess this is more bad news for xbox. Another reason to not buy an xbox

I think this might have exposed a huge hole I'm the next Xbox's "premium" plans.

It was one thing for a console-pc hybrid to be more expensive than a PS6, its another for it be more expensive than a consolised PC made by steam.

I think RIP Xbox I already know what I will be replacing my consoles with going forward.

I don't even have any interest in anything Microsoft is doing anymore, I think Steam is such a better company, there is no comparison really. Like comparing someone who is usually nice to you to someone who is hostile and out to get you.

As mentioned by digital foundry, this new steam box has a few major limitations just when compared to current generation consoles.

Firstly, it only has 8gb of available vram which could have a big impact on its ability to run the latest triple A titles at decent visual settings - especially relevant when displaying on a large screen tv. Modern games have quite demanding texture pack requirements - Indiana jones, tlou part 1 ans final fantasy 16 are just a few titles off the top of my head that would really struggle with that 8gb vram limit. These games perform better on series x and ps5 than they do on any of the current and past 8gb gpu’s.

Secondly, most modern anti-cheat systems are designed for Windows and rely on deep, kernel-level access to monitor the system, which is not compatible with Linux's open-source nature. This means that the steam box when using the default steam OS will be unable to access a lot of multiplayer titles including the recent battlefield, fortnite, apex legends, call of duty and EA sports FC.

I do wonder if Steam will allow its platform onto the new Xbox PC, given that it will be making a competing hardware product now.

Either way, MS and Value will be fine, but how will Sony and Nintendo fare with their dated business models in the shrinking home console market?

The key factors for my home PC purchase, like many, will be:

Price - Dependant on power level, but ideally under £999.99 for me (Or £599.99 for the mass market).

Power - Should be more powerful than the Series X (Seems like the Steam Machine is weaker with less RAM than a Series S).

Accessibility - Can I just run the game? Or do I have to mess with PC game settings?

Back Compatibility - Can I play my old Xbox game library on it?

It’s intriguing but I want my Xbox library and Gamepass so waiting it out to see what Xbox announces. Hopefully this speeds up Xbox’s announcement plans.

@Questionable_Duck I've got a feeling that Microsoft/Xbox will strip down not needed features of Windows 11 in time. For it's future PC/hybrid & OEM partnerships. As the Xbox OS runs the Windows 11 gaming subsystem.

I'm wondering if it forces Xbox to make an official announcement on the next system sooner than they would like. Not every detail but maybe a teaser trailer at the Game Awards with the name, release window and verify some of the rumored features, such as multiple store fronts

@Weebleman Windows Central's recent report about the next Xbox said that it will be able to natively play all games that you can currently play on an Xbox Series X/S. So it seems like it will indeed be native.

But, like you said, at the end of the day, all of this is just speculation. We need to wait for Microsoft to actually make announcements on the matter to get a clearer picture.

@Questionable_Duck A console with zero exclusives that essentially is playing PC games. 💡

@Gabrie Umm, no. PS5 has crushed Xbox 3 to 1, S2 has sold over 10M units already, and the top selling 1st party titles list of Nintendo is staggering. MS is the only one going to struggle massively next gen. If it's mainly just beefed up and little else, and there's zero exclusives, there's no reason for the masses to buy it. I'm about ready to bail cause I rarely use GP and there's no exclusives anymore.

Welp, maybe they shoulda kept Master Chief after all

Not being a Windows PC, is already a huge win.
Steam OS is still the best way to bring PC gaming to the living room or handhelds.

The specs though...
I expected more.

@Gabrie
Obsolete? And yet they sell like hotcakes and dominates the market? 😂

SteamOS faces more than just one challenge. Games with anti-cheat (call of duty, battlefield, fortnite). There are also many games with issues such as crashes, graphical bugs, and FPS drops, because DirectX calls are not properly translated. And I think this will only get worse over time, especially with the increasing use of specific technologies (ray tracing, DLSS, upcoming Auto SR, …). Studios develop natively for Windows, not for SteamOS, and that’s not going to change anytime soon, for a very simple reason: a PC is not just for gaming, and Linux will never be able to rival Windows in terms of versatility and software compatibility. This is both a strength for Windows and a challenge in terms of performance. So I don’t see the masses switching to Linux just for gaming.

And I’m not even talking about modding, which is very complicated on Linux, while many PC gamers are very attached to it. Or other gaming-related tools like Streamlabs, XSplit (no Linux equivalent), etc.

Many launchers don'y play well: epic, Xbox app, battle.net, EA app, ubsifit connect, rockstar games launcher, GOG, etc.... No native support for Game Pass.

Many recent DirectX 12 games run very poorly on SteamOS: The First Descendant, Final Fantasy VII Rebirth (Epic version), Forspoken, Starfield, Elden Ring (especially at launch), Star Wars Jedi: Fallen Order, Red Dead Redemption 2 (a game that often crashes on SteamOS), Cyberpunk 2077, etc.

I don’t even want to imagine GTA 6 when it comes out , it’s almost certain it will be nearly unplayable on SteamOS.

And I’m not even mentioning the weak power of the machine or their controller, which I really don’t like at all.

What do you mean by 'natively' play Xbox games, @Questionable_Duck? I am confused by the term, or are you referring to specific launchers for Xbox, Sony, etc...?

@Questionable_Duck
There will be no Xbox consoles games next generation, the new console will run the PC version download version for the full experience.
Additionally don’t bank on the new Xbox hybrid device to run series x games and further back downloaded, it could well be streaming only for older games.
And you want them downloaded you may have to use the PC version.

The above is the questions that are hanging over the new Xbox hybrid device and some of us sitting on the fence are waiting answers on those from Xbox.
The painful thing they know the answers and just won’t say to keep us hanging on.

If the next Xbox doesn’t play my Xbox library natively, then I am out, I already have a gaming pc in the office, and would probably built a steam machine for the living room. Or I just keep what I have for another 10 years, whatever.

@Fiendish-Beaver I mean that it will be able to play Xbox games without having to stream them through the cloud or whatnot. The next Xbox is supposedly going to play Xbox console games in the exact same way that the Series X plays Xbox console games, if that makes sense.

@OldGamer999 Don’t talk nonsense, Sarah Bond confirmed that the upcoming Xbox console will be fully backward compatible, so don’t speak without knowing. Xbox has always made backward compatibility a flagship feature, and of course all their games will be backward compatible , they even said it would go all the way back to the Xbox One. And it will be native

I´m not a huge graphics-snob, so the specs on this seem fine to me. Moreover, while Xbox has been my primary couch-gaming-console this generation, I find myself quite eager to move all my gaming to the living-room via this Steam machine, get a Mac Mini for work in my office and just wash my hands of Windows once and for all (yes, yes, Apple have their own issues, I know ).

I´ll have to audit my Steam library and see how many games I´ll lose access to, but a preliminary check this summer when I was vaguely considering a Steam Deck were optimistic.

My main sticky points are the price and availability. Since Norway is outside the EU it´s a pain in the ass to get this kind of gear imported without braking the bank or buying third-party.

@fatpunkslim
I never said it would not be backwards compatible.
But that does not mean it may only be by way of cloud steaming those games only, rather than full downloads.

I think you need to take what Microsoft say as not the truth or read into what they have said.
They never said by means of full download of the backwards compatible game to the new hybrid device.

I am staggered you believe anything they say or don’t say.

Steam released an other mid product after steam deck but it will be overpraised by steam funboys just like the steam deck... With that hardware its barely a 2K machine most likely a 1080p but with a price tag of 400-500$ it could be successful with casuals. I hope this will push microsoft to do better with windows, xbox full screen and their pricing but it could very much make Nadella cancel everything and put all the money for AI bs... Lets wait and see, I sure an not buying that unless its extremely cheap because even my laptop is about as powerful. I can just spend that money for an external gpu and make my xbox ally x a much better console than this.

If MS was really about to put out a $1200 machine they had better reconsider.

Not sure that would be necessary, @Questionable_Duck. I'm fairly certain that if you buy an Xbox game on Steam, that you then download it to your PC, albeit it is actually then shown in the Xbox app, but it physically on your PC, and can be launched from within Steam. You do sometimes have to use launchers for companies like Sony but you do still download the game.

I could be wrong, and it wouldn't be the first time, but I'm fairly certain that's the case. You might be able to choose to stream though, but again, I'm not 100% certain on that as I don't have any Xbox games in my Steam account...

@OldGamer999 the partnership with AMD will enable native support for backward compatibility fox all xbox console games (source: https://www.windowscentral.com/gaming/xbox/microsofts-ambitious-new-xbox-your-entire-console-library-the-full-power-of-windows-pc-gaming-and-more)

No source is ever perfect, but I prefer to follow official sources rather than the rumors of random insiders. And Jez Corden is still one of the best informed , he was the first to talk about the Xbox ROG Ally, for example.

@fatpunkslim
I really hope you are and the media are correct.
That is perfect.

All this really means for xbox is that low specs are here to stay. Developers will continue to target the switch 2 and modest pc builds like this. Hopefully they (or a 3rd party) release a series S successor next gen alongside the unnecessarily expensive one.

@BacklogBrad That’s exactly the problem, and why it will remain a niche machine. In the end it’s a tinkerer’s device: for unsupported games you need to use Proton GE, for other launchers you need tools like Heroic Games Launcher — not easy to configure for the average person. Modding is the same, it’s less straightforward.

If Microsoft manages to perfectly optimize the Xbox/Windows experience to match the smoothness and simplicity of SteamOS, the overall advantage will shift toward the Xbox Full Experience.

The advantage of the next Xbox, beyond all the already known ones — full compatibility with all games, launchers, software, complete backward compatibility with all Xbox console titles, etc. —

Is also that, just like the Steam Machine, The next Xbox console can rely on a single hardware configuration and therefore deliver optimization tailored to that hardware, without needing a bunch of drivers and unnecessary services.

What’s certain is that Microsoft still has work to do, but they also have time before launch. And I think they’ll at least reach the level of SteamOS in terms of performance, which isn’t that big today — we’re talking just a few FPS

Eliminates the need for xbox to exist as a platform.

I mean if people wanted the console features (people clearly don't care) then are they missing out on much?

The marketing, the audience it's actually targeting is probably still niche but sizeable enough for Steam to target then a mainstream audience Xbox is.

The timing of this is just enough early before the next consoles, like Switch 2 coming early was a good idea to get away from the others and do on their terms.

Apps many use elsewhere even if more then PS/Switch offer.

Back compat, CD app to download when other CD playable devices.

Games that are hit and miss depending on preferences.

Controller features like impulse triggers no one cared about or not advertised well yet better then HD Rumble on Switch.

Fair power to offer or fair Series S/X differences.

Steam headset, controller V2 design and feature differences that are awesome and console/PC is fair even if 1400p, or a store front or other aspects it will try and standardise, it's not perfect, but wow is it impressive to see what it's trying to do.

Xbox has branched out to anything with app/screen support, but I mean, people didn't even know Smartglass existed, how many got into PS Portal compared to remote play with PSP/Vita, how many people came around, are new, noticed or anything.

You can make many prior feature comparisons to when people noticed things, wait 10 years, what had impact to make people get a PS4 over an Xbox One and so on.

It's been clear.

Xbox is trying but the games I mean many Xbox One games tried but even still as someone who doesn't care for Sony cinematic IPs and their niche ones disappeared it was clear why I went to Switch 1 or Vita or Wii U or 3DS or still have my PS4/Xbox One around and get digital versions of PS1, 2 or PSP games not subbing to PS+ at all.

They have a lot to work out and give people a reason to care.

I think this is great considering Microsoft is no longer focused on console hardware. Microsoft is the next Sega.