Is Xbox Blocking Steam on Helix?

I know a lot of the excitement around the New Xbox code named “Helix” is around playing other store fronts…but what if that doesn’t include Steam?

What is Helix?

Xbox will be releasing their new next gen game console fairly soon. If AMD is to be believed the console will drop in late 2027.

The Helix according to slides released at GDC 2026 will be somewhat of a hybrid Console/PC for your living room. They are likely to compete directly with the Steam Machine from Valve which is supposed to release early 2026 and also bringing PC games to your living room. 

One of the advantages of Helix will be the continued backward compatibility with your current Xbox library while also supporting current/past PC games. We are unsure of exactly how Xbox intends to do this but it will likely require some sort of emulation for your generational library to play.

External Library Support

Xbox has come out and said that Helix will offer support to external storefront libraries. We currently see this working on the ASUS ROG Xbox Ally handheld devices running ‘Xbox Mode’ [formerly ‘Xbox Full Screen Experience’].

Built directly into the current ‘Xbox Mode’ you have access to Epic, Steam, Ubisoft, BattleNet, EA, ets. At the end of the day ROG Xbox Ally is a second generation PC Gaming Handheld for ASUS, so multi-platform support comes at no surprise.

EPIC has announced that they are working with Xbox to build an application specifically for the new ‘Helix’ console. This statement has bothered me since it was made.

There is a chance Microsoft is going to attempt to move customers from their Steam libraries over to purchasing their games from Xbox and their chosen partners. This would be similar to the Steam Machine as you can’t easily play Xbox Gamepass within SteamOS w/out workarounds and third party applications. 

With Helix being a PC I wonder if it is even possible to create a walled garden. Recently we have seen modders turn the PlayStation 5 into a Steam Machine running a full Linux OS. It even boots back into PlayStationOS so it still plays PS5 games.

Xbox Goal

Microsoft is trying to make Xbox a major player in the gaming space again. With the growing PC Gaming segment which includes sales of Xbox games on platforms like Steam and PlayStation has been partly propping the Xbox up financially.

Creating a PC hybrid in Helix leaves Xbox in a unique growth space by continuing to support current games libraries while having a more powerful machine to tackle the next decade of gaming across platforms.

I’ve said it before but I think the future of gaming is going to be more about services than it is going to be about platforms. If Xbox can manage to wall off Steam and convince players to buy from them, they could set themselves up for the future even after missing this opportunity during the Xbox One generation to PlayStation. 

Why not Steam? 

Xbox has never actually said that the Helix will support the Steam Library, only that it would support other store fronts. We all assume this means Steam because it’s on the ROG Xbox Ally X and it’s available on everything running windows.

It would be difficult for Xbox to sell games on its new system when competing with Steam and their aggressive sales. This has to be front of mind when designing this new Xbox. 

This brings me back to the statement from EPIC CEO Tim Sweeney around building an application to access their storefront on Helix. EPIC didn’t need to do anything but run their normal Windows app on the Xbox Ally, so why would they need a new app here?

EPIC seems to give away more games than it sells which might be a friendlier option from Xbox. This is assuming they can prevent Steam installation.

More Thoughts

The Xbox ‘Helix’ is likely to be at least $800 or more depending on if Xbox takes the typical model of a loss at the front to make money back in game sales. They are going to have an interesting cross generation period as well.

Xbox is looking to create 1 version of games across platforms; PS, Xbox Series [cross generation], mobile and Helix. Doing this might allow them to build into the code a lockout mechanism to keep Steam off the Helix Xbox.

Microsoft isn’t likely to be able to recoup costs if they take a hit on initial equipment if they are allowing current Steam users onto the platform. I know I have about 1300 games in my backlog and others have far more than that, so I won’t need to buy much and will stick with building my Steam library when I do.

Competing against the Steam sales is a definite revenue loser. Even EPIC learned they can’t compete so they instead offer a free game or two every week.

If Xbox stays PC focused which they seem to be I don’t see how they are successful without including Steam though I see how it will be harmful if they do. 

This is going to be interesting. I am diligently following the Xbox news to find out what happens with Helix as well as what changes are likely to happen with Gamepass, possibly a partnership with Netflix?

Are you interested in the Xbox Project Helix? Do you think they are going to offer a way to play your Steam games on the device?

GameOn’

CellPhish

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