The integration could enable Xbox games to be accessible on a wider range of devices, appealing to both PC users and console gamers.

Rumors suggest that an Xbox handheld device, expected to launch later in 2025, will run on Windows, facilitating seamless gameplay transitions between devices.

Moreover, Microsoft is expanding its Xbox brand beyond traditional gaming consoles, aiming for integration across various devices, including PCs and mobile phones.

Currently, a version of the Steam application is available under the name 'Steam Developer Beta' for select Microsoft employees, indicating ongoing internal tests.

This potential integration could significantly enhance the gaming experience by allowing users to access Steam's extensive library directly from the Microsoft Store.

Additionally, it may allow decades of backwards-compatible games, including some PlayStation exclusives, to be available alongside Xbox titles.

Should these leaks prove accurate, official confirmation from Microsoft could be expected soon.

Reactions to the rumored integration have been mixed, with some gamers expressing cautious optimism about the potential benefits and others questioning the necessity.

Recent reports indicate that Microsoft is testing Steam support for its Microsoft Store, suggesting a future where Steam can be accessed on Windows-based Xbox devices.

If implemented, this would mark a major shift in the console market, blurring the lines between traditional consoles and PCs.

As gaming preferences shift, many users are favoring PC gaming over consoles, citing the superior performance and flexibility of modern PCs.

Concerns have also been raised that this shift could lead third-party developers to prioritize the Steam platform over the Xbox Store.