Xbox Boss Phil Spencer Cheers On Valve’s Steam Machine, Says It Mirrors Xbox’s Open Approach

Phil Spencer is all in on Valve’s new Steam Machine. The Xbox gaming chief gave the greenlight, publicly and enthusiastically, to Valve’s just-unveiled console-style PC, a move that might surprise fans used to seeing these giants as rivals.

Steam Machine is set to hit early next year, and it looks like a direct shot at the living room. The six-inch cube is “over six times the horsepower of Steam Deck” and is meant to bring your PC library straight to your TV. It was revealed alongside a new Steam controller and fresh VR hardware, making Valve’s entry into the console space impossible to ignore.

Xbox, Steam, and the Push for Openness

Rather than circling the wagons, Microsoft’s top brass is cheering this competition on. On X, Spencer framed the Steam Machine not as a threat but as proof that gaming thrives on options. “Gaming moves forward when players and developers have more ways to play and create, especially across open platforms,” he posted. “Expanding access across PC, console, and handheld devices reflects a future built on choice, core values that have guided Xbox’s vision from the start.”

Spencer didn’t just toss kudos Valve’s way; he connected Valve’s announcement to Xbox’s own strategy. Microsoft is rumored to be cooking up a new Xbox console that’s a hybrid device, similar in spirit to what Valve just announced. Reports suggest the next Xbox aims to let players buy and play games from competing stores like Steam, instead of locking them down to the company’s digital ecosystem.

Sarah Bond, president of Xbox, recently hinted that the next Xbox will be inspired by devices like the Asus ROG Ally and Ally X handhelds, which are already blurring the line between console and portable PC. The idea: make it as easy as possible for players to jump between platforms and stores, and peel back those “walled gardens” that force people to buy through a single official storefront.

Valve Responds: “It’s About PC Gaming, Not Following Consoles”

If it sounds like Valve’s announcement was timed as a countermove to Microsoft, Valve’s team says nope. Speaking to Eurogamer, Valve PR Kaci Aitchison Boyle insisted the Steam Machine project grew naturally out of their own PC gaming roots. “We typically just work back from our own experience playing PC games and what we wish was possible to do and what we hear our users say as well,” Boyle explained. In other words, the Steam Machine is Valve doing Valve, not chasing Microsoft or Sony.

Valve’s willingness to nudge PC hardware toward the living room shouldn’t be underestimated. Pair it with a new controller and VR headset, and the company is betting big on giving players more ways to experience games where they want, how they want.

Spencer underscored the friendly rivalry by emphasizing Xbox’s status as “one of the largest publishers on Steam.” So when Valve announced their console-like leap, he didn’t see reason to circle the wagons or dig in for a fight. “We welcome new options for players to access games everywhere. Congrats on today’s launch.”

The harmony is real, at least for now. As both Xbox and Valve seize on “openness” as their rallying cry, it’s clear the old playbook of keeping players locked into one ecosystem is looking out of date fast.

What’s Next for the Living Room?

The real story is about what comes next. If Spencer gets his way, tomorrow’s consoles, whether from Microsoft or Valve, won’t decide what games you buy or where you buy them. You’ll decide. That’s the direction both companies are betting on, and they want everyone to know it. For now, expect more headlines as the Steam Machine prepares for launch, and eyes turn to Microsoft’s next reveal. The border between PC gaming and the classic console experience is only getting blurrier.