Steam Machine “Will Become Xbox’s Worst Nightmare” and Threaten Microsoft’s Strategy — Analyst
Analyst Joost van Drönen argues that the Steam Machine could become a serious threat to Microsoft, despite the company’s conciliatory response. Valve’s new console will directly challenge Xbox’s recent strategy of “it’s Xbox, everything on Xbox.”
The Steam Machine turns Microsoft’s worst nightmare into a concrete product. It drives Microsoft further down a path where Game Pass and cloud access matter more than physical consoles.
Microsoft seems to recognize this, and Xbox Gaming chief Phil Spencer has stressed that games take precedence over hardware while praising the Steam Machine.
Analyst David Cole adds:
Xbox sales are slipping. The Steam Machine shows that the market increasingly has less need for a dedicated Xbox console.
Van Drönen also warns of a subtler threat:
The strategic risk is that Valve could become the preferred platform for hybrid PC-console devices, with Xbox titles strengthening the Steam ecosystem more than Microsoft’s own platform.
Source: iXBT.games
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