“Microsoft's Worst Nightmare”: Steam Machine May Nail the Coffin Shut for Xbox Consoles
The media has been flooded with information that the next-generation Xbox will not be a console in the traditional sense but rather become a hybrid PC in a compact case optimized for gaming.
However, by the time Microsoft's new product is released, the niche for such devices will already be filled, as in 2026 Big Announcement from Valve: The Company Introduced Three New Devices — the Stationary Console Steam Machine, Steam Controller 2, and VR Headset Steam Frame, and this event could put a definitive end to the rationale for releasing Xbox consoles.
What is Known
Stern School of Business at New York University (NYU Stern School of Business) expert Joost van Dreunen analyzed the information about Steam Machine and called it “Microsoft's worst nightmare.” He noted that being a powerful hybrid of a console and PC, Steam Machine makes buying an Xbox meaningless since this console has no exclusives and all games are released on Steam, thus they would run perfectly on Valve's new device.
Moreover, Steam Machine will offer extensive customization options: you can install any operating system, replace the SSD and RAM, as well as choose a suitable design for the front panel, which easily attaches thanks to magnets.
Valve has not yet named the price of Steam Machine, but several experts believe it will be $400-500, which will be a great offer for a gaming PC with decent specifications. Although there have been assumptions about $1000, such a price seems unlikely.
Founder of DFC Intelligence David Cole added that with declining Xbox sales and the release of Steam Machine, Microsoft should focus on its publishing activities and game development, as well as popularizing its services, as there may not be room for Xbox consoles in the market.
Source: GamesRadar