Valve's Steam Machine is "great news" for Microsoft because it means Xbox can just "make great games" and worry less about hardware, says former Blizzard exec: "All will go in the right direction"

Halo: Campaign Evolved screenshot.

The industry is shook at the minute, thanks to Valve entering the home console space with the long-fabled Steam Machine, now an official piece of hardware. While it's easy to compare the device to an Xbox, as Valve is another PC corporation moving toward consoles, a former Microsoft exec believes the Steam Machine will actually benefit the publisher.

"This is great news for Xbox and their new direction forward," tweets Mike Ybarra, former Blizzard president and, previously, corporate vice president of Xbox and Windows. "They simply no longer have to spend resources on making a device, or helping third party manufacturers to make a device." There's "no better partner" than Valve and PC, and Microsoft should recognize that, he argues.

"If Xbox continues forward with a 'PC/Xbox device' on Windows, it's a mistake," he says. "The challenge is they need YOU (consumers) to continue to buy games for Xbox consoles (S, X, etc.) because they need the [revenue] from it [in the] short term."

I disagree. I think this is great news for Xbox and their new direction forward. They simply no longer have to spend resources on making a device, or helping 3rd party manufacturers to make a device. There is no better partner in PC gaming vs. Valve - embrace them and their HW… https://t.co/RD1g6KTN1INovember 13, 2025

He seems to be referencing the ROG Xbox Ally – a Steam Deck rival that arrived in October of this year, boasting high performance and a legitimately intuitive interface . The drawback, though, is in its price, since the ROG Xbox Ally X runs for $999, charging well over the most expensive $649 Steam Deck OLED.

Microsoft should refocus on what matters more, in Ybarra's eyes: the software. "Xbox should simply make great games. Cost model, focus, morale – all will go in the right direction," he adds. That's easier said than done at the moment, as thousands were laid off earlier this year throughout Microsoft's games division. Whatever Xbox leadership decides, it'll need to be a course correction, as Valve has it clear their competition isn't wasting any time.

Xbox boss Phil Spencer says "we welcome new options for players" as Valve unveils new rival hardware in the Steam Machine, saying new competition is how "gaming moves forward"