Microsoft has admitted coming up short in the PC gaming category of late. Speaking with GamesBeat, corporate vice president Phil Spencer laid out Microsoft's shortcomings.
"Valve is right down the street from us," Spencer said. "They've done a great job of keeping the PC ecosystem strong at a time where I don't mind saying that we could have been more focused on what was going on in PC gaming."
Spencer went on to say that Microsoft should have done more to match the ecosystem Valve created for PC gamers.
"We were probably too focused purely on console," Spencer said. "With Steam, [Valve has] done an amazing job of building this thing that, in a lot of ways, we should have been building as well at Microsoft."
Valve introduced Steam Family Sharing in September, making Steam the first major digital platform to allow users to share their libraries of PC games with friends and family. Microsoft had planned to be first out of the gate with its own Family Sharing plan for the Xbox One, but scrapped this plan in June when it reversed a number of its digital policies
Still, this plan is not gone forever. Senior Xbox director Albert Penello told GameSpot at PAX Prime that the Family Sharing plan will return.
Though Spencer spoke fondly of Valve and praised the efforts the company has made in the PC space, he said he believes Valve's push into the living room via Steam Machines won't be a walk in the park.
"This is where I think they're going to have to do quite a bit of work," Spencer said. "There is a difference between being a game developer, running a store, and being a platform company. "That's an evolutionary jump. They made the jump from building Half-Life to having a set of franchises to running Steam. They did a good job of learning through that. Now they're taking the next job to become a platform company--in some sense a hardware company, but in the truest sense more of an OS company. That's not an easy transition."