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Side Quest, Episode 96 | Steam on Xbox Makes Absolutely No Sense (For Xbox, Anyway) (Patreon)

Published:
2025-03-30 16:00:15
Imported:
2026-06
Tags:

Content

With Xbox rumored to be working toward Steam support on future hardware, a simple question must be asked: How does that benefit Microsoft, exactly?

Files

Steam on Xbox Makes Absolutely No Sense (For Xbox, Anyway)

With Xbox rumored to be working toward Steam support on future hardware, a simple question must be asked: How does that benefit Microsoft, exactly? Support Last Stand on Patreon for early access: https://www.patreon.com/LastStandMedia

Comments

Senor Benjamin

It’s 2025 and I’m playing Run Sackboy Run on the Vita…

Agony

Yes yes yes yes yes

Lawrence Adams

Anybody else having issues with playing the video?

plzsendpie

Doesn't Make *Cents*

Frank M

It seems like Microsoft (MS) might be trying to blur the lines between steam and the gamestore. If your library is all found in the MS store (steam games included), then maybe they're hoping to you'll be more willing to buy the games from microsoft due to optimized purchasing from the MS store. It makes me think of apple and how some apps like kindle require you to leave the kindle app to buy books. That would certainly be a pain to have to buy games on steam through another device. If I were at MS, I'd be thinking of trying to incorporate all the libraries from all the major PC storefronts (GoG, Epic, Amazon etc.) so the MS storefront can act as the main repository of all PC games. I have PC games on many platforms and no convenient way I know of to collect them all into one library. I can't be the only PC player that would have an interest in a single library with all my games. I think the resurgence of the handheld is also quite appealing to MS. The steamdeck is awesome but far from the best. If MS made the best handheld PC that also let me play my steam games on it, I'd certainly be interested in it. Get people in through the MS hardware and slowly steer them towards MS gamestore through ease of purchase.

HotCrossBuns

Agree that it doesn't make much sense. What are your thoughts if we change the logic of the operand from Xbox plus Steam to Xbox vs. Steam? Perhaps Xbox is so bullish about online infrastructure (Game Pass, play anywhere, etc.) that they see this Asus device as a test bed for how well their storefront compares directly against Steam when players are given the choice. If it flops, and 90% of players buy games through Steam, then Xbox likely wouldn't pursue this further. However, maybe the ratio nets out slightly more favorable and they see a path towards taking on Steam more aggressively if their end goal is for "Xbox" to become the largest gaming subscription service & digital game retailer across as many devices as possible.

Wayne Moss

It’s definitely interesting to see if Steam does come to Xbox & how there game sales suffer.

Nicholas Renaud

It seems like the only benefit here is that I don’t have to buy a steam deck. I can spend less and get a Microsoft consolel or a hybrid console, but that still does not benefit the company when we’re talking about Microsoft.

Bisexual Lighting Rigger

I would be interested in a side quest episode about reasons to buy a PS6. I have the PS5 pro and unless there are exclusives on PS6 I really can't see a reason to rush out and get one at launch. Sony is more than happy to make everything cross generation now. I think they are going to have a serious problem selling another 800$ machine in a couple years without exclusives or the promise of exclusives. Xbox has Steam now? Game Pass is getting great games every month now? suddenly Xbox looks a lot more enticing.

Mr. Scott If You're Nasty

It makes 100% from a consumer point of view. This would mean many people buy this hybrid console that wouldn't have considered Xbox otherwise. The Microsoft angle in terms of games (buying on Steam where MS would lose a chunk of sales revenue) is hard to figure though. My only guess is they have data suggesting once in a hardware ecosystem a consumer would be more interested in their services (gamepass for example). Also a consideration, they start selling the hardware at a profit instead of loss. It's very hard to figure out the why here because we don't have the data MS has. We are trying to figure out why someone moves from point A to point B in a room but we can only see a third of the room. Super interesting discussion though.

Chris Strommer

Side Quest is the best thing ever. Condensed Colin ❤️

KYisLife

I agree with all the points given except that MS does not seem to believe that selling games is their future. The comparison to the NES game sales to the Gamepass subscription is apples and oranges. I don’t think Gamepass and just generally training people to not purchase games is good but Gamepass seems like the one reason why MS would allow Steam. Get people in and sub.

Plumber Boy Mustache Man

Not only doesn't it make sense but you can already get a similar experience right now. The average mainstream gamer isn't going to buy an Xbox when their games are on PlayStation and certainly they aren't going to be enticed by steam.

Jordan Falduto

This is going to age like milk. The PlayStation house of cards just needs a gentle breeze.

Jordan Falduto

Woah, you're using the same tired point? it's about building a competitor to playstation. xbox is dead and steam is the best ecosystem out there by a mile. Gabe is ex-Microsoft, has defended them in the past, and happens to be starting a move into the console business. if xbox and steam combine their powers to become part of the same family and i can play literally anywhere I dont really think stagnant (or worse) playstation has a chance.

southish

I assume Microsoft will work out a deal with Steam regarding percentages just like other large companies have, even smaller ones have better deals than the standard like SEGA, I believe Capcom might on a wider scale but not sure.

Uvula Smack

My exact question/comment this week on dukes

Matt Wiles

I’ll watch in bed later. But just to say; as a lifelong PS owner, if Xbox produce a console that plays PC games via Steam, it’s a day one purchase for me.

Matt Wiles

A console PC doesn’t make sense? It’s like the biggest gap in the market and I can’t believe no one has done it yet.

Anthony Brothers

Great video, but I think the problem is the plan isn't what consumers are hoping for. My view is that Steam integration will be a part of GamePass Ultimate similar to the EA Play deal, and the goal is to bring in more Gamepass subscribers. If you sub for the top GamePass subscription, you will have access to a portion of your Steam library. You won't be able to buy from the Steam store via the Xbox, but supported games you purchase on your phone or pc will become available to play on your Xbox via a Gamepass subscription. I have other thoughts, but that's most of what I see the model looking like.

TrackyMatts

I'm highly skeptical of Steam/Gabe getting involved, they're a privately owned company that has zero reasons to get involved with an xbox. They get nothing out of it. Steam can already help you game everywhere via a Steamdeck. And as others have said in this thread already, this joined up ecosystem already exists in the form of a PC.

Jordan Falduto

above all, i think the most we and Colin can be is speculative. of course it's going to age like milk because they haven't told us the details yet. but to your point, Colin talks about "actually, there aren't many pc players" "actually, the steam deck didnt sell that well." Valve has everything down from an ecosystem perspective but they're missing an audience that xbox knows well, the console audience.

Jordan Falduto

i think the critical point you and colin are both missing is, the average playstation gamer is absolutely casual by our standards and will definitely be open to moving ecosystems.

Kevin Cooper

Side-Quests are kind of a throwback thing that were always video-only, so I imagine these one-offs will remain the same way unfortunately. Most likely because of the charts/graphs/stats that usually accompany them.

Stephen

But at that point, you’re targeting people already on PC. Why would someone buy this in addition to the PC they already have?

Stephen

That’s a completely different issue. You’re referencing publishers selling their games on Valve’s storefront. This is Valve’s storefront selling games on Microsoft’s platform. As Colin points out, there’s no incentive for Valve to cede their revenue to Microsoft.

Matt Wiles

You think the general public will buy a PC and connect it all up to their main living room TV? Gotta be a little more savvy than that with your thought process... A console is vastly different to a PC. It needs to be in console form.

AllTooEasy_

Am I missing something or is this ripe for DCMA or copyright strike? I remember that being a sticking point for LSM not using other footage for other games solely to say they have never used it.

Ed

They'd be selling consoles and publishing games on everything. Them selling games on their own marketplace doesn't matter, they're gonna be selling games on Steam and on PSN, and on GOG and whatever else. This is the first time a company has ever done this.

Frank

Please keep doing these, they are great.

Zechariah Barber

And hopefully it fails so we can go back to ppl paying for shit

Ed

Hopefully what fails?

Anthony Brothers

Currently, Xbox makes money from game pass subscriptions and game sales on their store. If the next Xbox is doing away with the need for game pass to play online and gives the ability to bypass the Xbox store, Microsoft loses most of their ability to make profits. For people who want a console and a pc, having access to your Steam library on your console could be a feature that would cause some to go Xbox/pc instead of PlayStation/PC. It may not be what Microsoft is doing, but it makes more sense financially than what everyone seems to be dreaming up.

Trill Spencer

Hey Colin idk if you’re still looking at the comments on this but I think there is only one answer that makes sense. You yourself have reiterated countless times that Xbox users DO NOT BUY GAMES. If we assume that is the case (and I think it almost certainly is), what does Xbox stand to lose from this exactly? 1. Allow Steam on your box to drive hardware sales, sidestepping competition with PS by tapping into a completely different market. 2. Take a % cut from a la carte Steam sales on Xbox. 3. Grow the Xbox userbase and, most importantly, funnel more people than ever into GAMEPASS ! Actually I think it’s potentially a very savvy and pragmatic maneuver if we assume that a la carte sales on the Xbox storefront are negligible at this point.

brendan p

I thought Colin already somewhat addressed what you are bringing up, but maybe not directly. Xbox is not in a position to negotiate any sort of rate with Steam. I just don't see how Xbox could enforce a percentage cut onto Steam sales. And, I don't think Valve would play ball with that either. I guess, there is maybe a scenario where Xbox opens the ability for 3rd parties to put their storefronts onto Xbox systems, as long as Microsoft gets a royalty. But, I still don't see that as a good thing for Microsoft, as they would be cutting their normal earnings from software sales by a large margin, presumably. The above is mainly in your response to the Steam-tie-in comments. I do agree it could funnel more folks to Gamepass. And, I suppose if software sales on Xbox are low enough that they become negligible, they could allow this and bet on selling enough hardware for it to become a solid move. Either way, it's all been very interesting to see Microsoft move the way it has, ever since the Gamepass initiative started. Only time will tell.

Trill Spencer

I can’t agree with this. Xbox is in an overall vulnerable position to be sure but there simply is no deal to be had if they aren’t getting a piece of the pie. Allowing Steam on their box gives valve access to a brand new market which they have tried and failed to penetrate already. That doesn’t come for free, and I don’t think unpredictable hardware and gamepass traffic makes up for that. Even if Xbox takes a cut as large as 50% (doubt it will be that large), Valve loses nothing and only marginally reduces their profits from the venture.

VegaTheLate

I though about this too and while I generally agree there is something you haven't considered and it may be due to you not being familiar with PC gaming. They may simply allow players' Steam games to appear in their XB library. Steam already does this themselves with games from other launchers and storefronts like GOG. So players would be able to access their Steam library easily without leaving the XB ecosystem which could help mitigate some of those lost sales by keeping them closer to the XB store. You'll have to "leave" to XB hub where you spend most of your time to open the Steamstore, make a purchase, link the game to your XB library, then go back to the XB hub to play it. They're going to rely on people's preference for convenience to keep them buying from them.

brendan p

I didn't consider the market penetration for consoles that Valve has failed at in the past, which is a good point. I guess, what would be the difference between Steam being on a Windows device, and Steam being on an Xbox device? They are owned by the same company. But, one of them Steam would have to pay a percentage for sales? Simply because the device is branded with their gaming label? Maybe that's just how it is, and you may be right. I guess I just am having a hard time seeing how that deal would truly shake out. But, I guess if Microsoft suggests a royalty, Valve could agree.