Ex-Xbox Exec Urges Valve to Open SteamOS to Third-Party Hardware Makers

by Michael Brown - Business Editor
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Valve’s forthcoming Steam Machine is already drawing scrutiny,even before its anticipated 2025 release,as industry figures debate the potential for an open-source approach to the platform’s operating system. Concerns over a potential price tag exceeding $750 have prompted calls for Valve to allow third-party manufacturers to utilize SteamOS, perhaps broadening accessibility and fostering competition in the emerging PC-console hybrid market. former Blizzard Entertainment President Mike Ybarra publicly urged Valve to consider this expansion, highlighting potential benefits for both consumers and the Steam platform itself.

Valve is facing calls to open up its SteamOS platform to third-party hardware manufacturers, a move that could potentially lower the cost of entry for next-generation gaming PCs and boost revenue for the digital distribution giant. The discussion comes amid concerns that Valve’s upcoming Steam Machine could carry a price tag exceeding $750.

Mike Ybarra, former President of Blizzard Entertainment and a veteran of Microsoft’s Windows and Xbox teams, urged Valve to allow wider adoption of SteamOS. “Please @valvesoftware let 3rd parties use SteamOS and build the hardware with a lot of different configurations. SteamOS will take off and your Store revenue will only go up,” he posted on X. This move, Ybarra suggests, could stimulate the market and drive sales through increased accessibility.

The call for broader SteamOS access follows suggestions that Valve’s new Steam Machine will likely cost more than $750. IGN US has estimated a price range of $700–$800. For comparison, the standard PlayStation 5 with a disc drive retails for $499.99, while the Digital Edition is priced at $449.99. The PlayStation 5 Pro is currently listed at $799.99.

Allowing third-party manufacturers to create Steam Machines could lead to more affordable alternatives, according to Ybarra. However, it’s worth noting that third parties are already capable of utilizing SteamOS, as demonstrated by the Lenovo Legion Go S. Valve itself indicated openness to other hardware running SteamOS in a recent interview with IGN, emphasizing that other manufacturers would need to invest in hardware development.

This approach mirrors Valve’s initial strategy with the first generation of Steam Machines a decade ago, which involved third-party boxes running Valve’s operating system. While theoretically anyone could have created a Steam Machine in the past ten years, widespread adoption never materialized. The current situation highlights the challenges of fostering a robust hardware ecosystem.

Ybarra also encouraged Microsoft to consider embracing SteamOS, though he acknowledged the unlikelihood of such a move. “This is what Xbox should do, btw,” he stated. “But they will likely be forced to push Windows with AI, Copilot, Teams and more. They could do it AMAZINGLY if they embraced SteamOS on hardware.” Microsoft’s potential entry into the PC/console hybrid space could significantly alter the competitive landscape.

Microsoft is reportedly developing plans for PC/console hybrids, with recent reports suggesting the next Xbox will be capable of playing PlayStation games previously released on PC via Steam. Titles such as Sony Santa Monica’s God of War, Insomniac’s Spider-Man, and Sucker Punch’s Ghost of Tsushima, along with a vast library of other PC games, could become playable on the next-gen Xbox, marking a first for the industry.

According to Windows Central, users of the next-generation Xbox will have the option to remain within the Xbox ecosystem or switch to Windows, effectively transforming the console into a traditional Windows PC. This would grant access to PlayStation games on Steam, as well as titles from Blizzard’s Battle.net launcher (World of Warcraft) and Riot’s launcher (League of Legends). This flexibility could appeal to a broader range of gamers.

For a comprehensive overview of recent hardware announcements from Valve, including details on the next-generation Steam Machine and Steam Controller, IGN provides a detailed summary. Additionally, Valve has shared insights into the development of the Steam Deck 2, as reported by IGN.


Fatih is an editor at IGN Benelux. He is a big Sci-Fi and MCU fan. Lately he hasn’t been able to get enough of Marvel Rivals and Football Manager.

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