Rumor: Xbox may stop releasing its games on Steam to push Microsoft Store on PC

Windows Central journalist Jez Corden says Microsoft may be leaving itself room to rethink how it distributes Xbox games on PC, including a scenario where future releases no longer appear on Steam.

In a post after the podcast, he said Microsoft has plans for how it will show up on PC, and that those plans could create a window to potentially pull out of Steam — though he also stressed that no such change has been announced.

Corden later added that he "REALLY" doubts Microsoft will actually leave Steam. Even so, he said the company is doing something that could give it the option to do so, which is why the rumor has drawn attention.

For now, the situation remains unchanged: Microsoft continues to release first-party Xbox titles on Steam, while also selling them through Microsoft Store on PC. According to the rumor, the idea would be to make Microsoft Store more attractive to players by reducing or ending Steam releases.

The broader context is that Xbox has reportedly been releasing nearly all of its own games on Steam alongside Microsoft Store launches for about ten years. That is why the suggestion of a strategic turn feels so sharp: it would mark a notable shift in how Microsoft handles its PC distribution.

There is also precedent. In 2016, Quantum Break launched first on consoles and Microsoft Store on PC, then arrived on Steam less than six months later.

Previously, reports revealed that Microsoft continues to sell Xbox Series X/S consoles at a loss.

Would Microsoft really walk away from Steam, or is this just a theoretical option?