You're right. This is true.
There is a third option, I think, where Microsoft opens up their Xbox to allow for Steam (and KB+M) to be installed, so long as they get a split of Valve's revenue for every sale made from an Xbox console, and also if Microsoft made it clear that the Xbox was not specifically supported for these titles the same way that games carrying the Xbox banner are supported and optimized. In the Xbox One interface, for example, "Steam" could be its own app, and you launch your games from within it; furthermore, in the "Games + Apps" section, where they separate "Apps" from "Games", they could add a third filter for "Steam" which includes only your Steam games.
Naturally, the Steam app on the Xbox would be a modified, restricted version of their app.
I don't see what they have to gain by sacrificing this additional revenue because if you wanted to make a game restrictive to the Xbox as a piece of hardware you can still do it-- still
have to do it-- by paying the developer not to spend the incredibly lucrative time to easily port it to the other console and PC. It's 2017, and all variations of the PS4 and Xbox One consoles operate on
AMD Jaguar x86 CPUs (w/8 total cores) and GDDR5 GPUs. The Xbox One OS includes Windows 10 (& DX12) at its core; the PS4 is slightly more exotic in that it runs on a proprietary fork of a FreeBSD platform (& DX11) for its OS, but this amounts to little practical difference versus Linux in adapting games, as both belong to the "UNIX-type" family of operating systems, and of course Steam, in addition to running on all versions of Windows including Windows 10, where it is most popular, has its own homegrown operating system for the Steam consoles called
SteamOS; a fork OS that Valve built on the Debian base of Linux. Virtually all games in existence run on DX11 or OpenGL with only the latest and greatest taking advantage of the most advanced DX12 or Vulkan APIs. There are few hiccups that either platform's "custom" architecture and operating systems offer.
Hell, even the same Freesync monitors & TVs that attract AMD owners in the PC world are attractive to these console owners.
So they're already paying developers besides themselves to restrict their games to the Xbox. My best guess is that Microsoft already achieved the sale of their "box", and the whole purpose of this is to control the revenue streams attached to it. Basically we're demanding they upend the very foundation of their business strategy. It's the only threat that can't be solved:
- Steam sells identical games also available on Xbox platform where Microsoft makes a more favorable revenue split on sales
- Solution: block any game Xbox sells on its own system from the Xbox Steam app
- Xbox Live service subscriptions dwindle; free online PC games would threaten this
- Solution: disallow external servers and block all games with free online play from Xbox Steam app
- Opportunity cost: money spent on Steam is consumer time exhausted, a finite resource, and it's money NOT spent on Microsoft's Xbox store
- Solution: don't put an Xbox Steam app on your console
Still, it's becoming more and more intriguing as it appears that the PC master race and the dirty console peasants may be forced into the unthinkable condition of banding together in order to ward off the mobile barbarian hordes. After all, YouTube competes for time, but if Microsoft didn't include it, then it would be one thing their competitors had that they didn't. Better to have something, and better still to have something your competitors don't.