Microsoft is exploring options to reduce its reliance on Steam for PC game distribution, according to Windows Central reporter Jez Corden. The company has internal plans discussing "how they show up on PC," but no official decisions have been made yet.
This speculation emerges as Microsoft strengthens its own ecosystem through Game Pass and the Microsoft Store. The company already offers day-one access to first-party titles on Game Pass, undercutting Steam's traditional sales model. Releasing future Microsoft games exclusively or primarily through the Microsoft Store and Game Pass would give the company direct control over pricing, revenue splits, and user data.
However, executing this strategy presents substantial challenges. Steam dominates PC gaming with roughly 90 percent market share. Players expect major releases there, and removing titles would trigger backlash. The Microsoft Store has struggled with reliability and user experience compared to Valve's platform. Migration would require rebuilding consumer trust and habit.
Corden emphasizes that Microsoft currently has no concrete plans to leave Steam entirely. The window he references suggests the company sees an opportunity sometime in the future, possibly as Game Pass reaches critical mass and Microsoft's own PC infrastructure matures. The strength of Game Pass on console and mobile could theoretically provide leverage to drive PC players toward Microsoft's ecosystem.
For now, Microsoft likely benefits from maintaining Steam presence while simultaneously strengthening alternatives. This hedging approach lets the company gather data on which distribution model works best before committing. A full Steam exit would risk alienating audiences and gifting sales to competitors like Epic Games or GOG.
The conversation reflects broader industry tension over platform consolidation. As subscription services reshape how players access games, publishers constantly evaluate where to sell. Microsoft's internal discussions about PC distribution strategy suggest the company is preparing for multiple scenarios rather than planning imminent change.