Sorry for the dumb question but I noticed I will be able to buy Starfield on Steam which is great because I was about to sign up for Xbox gamepass. I thought Starfield is an exclusive, so how come you can get it on steam?
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Microsoft doesn't consider Steam as competition, and then you have to register it with a Microsoft account.
Ohhh. Ok. That makes sense.
Microsoft only does things that make it more dominant in a field. They have admitted fully that the Xbox brand is entirely to stop Sony from making a PC competition. If Sony leaves, don't expect MSoft to stay. Windows is their actual money maker.
Microsoft is constantly trying to produce game software, therefore I think the Xbox brand is a means for promoting that. But they don't care if you buy their software from Steam. They might make a little bit more from their own storefront, but you're right it wouldn't be worth it maintaining the whole Xbox brand just to try to make money as a Steam competitor.