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Ex-Microsoft executive says Steam Machine will be PS5 and PS6 rival, not new Xbox console

Steam Machine and PS5 seen in a living room
ⓘ Valve, Sony, Firefly AI with edits
Steam Machine and PS5 seen in a living room
A former leader at Microsoft envisions Valve replacing Xbox consoles in living rooms. Downplaying concerns about the Steam Machine price, Mike Ybarra is confident it will become an alternative to the PS5 and PS6. Without Xbox exclusive games, Microsoft may fail to generate interest in its hardware.

Mike Ybarra is one of several former Microsoft executives skeptical of the new Xbox console. Posting on social media, he believes that Sony sees the “last nail in the coffin with Xbox.” Instead, the Valve Steam Machine could become the main living room rival to the PS5 and PS6.

Sony's changing attitude toward Steam

Also having served as the Blizzard Entertainment President, Ybarra commented on a recent PlayStation report. Bloomberg’s Jason Schreier predicts that Sony will reduce the number of single-player PC ports on Steam. Ybarra thinks the uncertain future of Xbox consoles and Valve’s upcoming system both influenced the rumored move.

According to the ex-Microsoft employee, Sony now sees “Valve as a major new competitor.” Ybarra addressed gamers who are skeptical that the Steam Machine will have mainstream appeal. He noted the massive number of Steam users and perks like a convenient return policy, family sharing, and free multiplayer.                

Ybarra doesn’t expect that the Steam Machine price will deter many buyers. He anticipates that third-party OEMs will offer a wide range of configurations in the $500-$5,000 range. Nevertheless, the manufacturer hinted that rising storage and memory costs may challenge budgets.

Before Valve unveiled its compact Linux cube, Sony may not have considered the company a console maker. However, more buyers could soon be playing PS5 games ported to the PC on large 4K TVs. As a result, PlayStation is potentially changing its approach to protect first-party hardware sales.

How exclusivity factors into the console war

The shift away from Xbox exclusive games has been a sticking point for Ybarra. While supporting its cross-platform publishing efforts, he argues this will limit the appeal of the new Xbox console. Without these incentives, the critic questions whether fans will embrace the Magnus-based system.

Valve could benefit from Microsoft's struggles to maintain any share of the hardware market. Even so, some gamers remain unconvinced that Sony should deem the company as a threat. Many PC titles with anti-cheat safeguards aren’t supported on SteamOS. Valorant and Fortnite are two popular shooters available on the PS5, but they likely won’t be supported on the Steam Machine.

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> Expert Reviews and News on Laptops, Smartphones and Tech Innovations > News > News Archive > Newsarchive 2026 03 > Ex-Microsoft executive says Steam Machine will be PS5 and PS6 rival, not new Xbox console
Adam Corsetti, 2026-03- 2 (Update: 2026-03- 2)