According to insider eXtas1s, Microsoft has already started internal testing of the Steam integration within the Microsoft Store environment.
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53d

I’m going to assume MS is going to containerize/translate Steam somehow. So you will have the standard locked-down xbox OS for playing all xbox games + Windows/W32 translation layer for using Steam (Windows Subsystem For Xbox). All games launched via Steam will use the translation layer.

The WSX will be cryptographically signed so that only authorized W32 applications can be executed which are pushed by MS only.

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12d

why would an xbox that runs an x86_64 architecture need a translation layer to run Windows binaries? This sounds like the next xbox is going to be a fixed hardware Windows PC with a custom interface replacement and probably all the unnecessary services ripped out of it.

kadup
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It doesn’t need a translation layer, but it does already use a hypervisor even for running native games. It’s how Microsoft guarantees every single bit of executable code is authorized.

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52d

why would an xbox that runs an x86_64 architecture need a translation layer to run Windows binaries?

This is based on my partial understanding of the xbox architecture. I suspect that there is a difference between full fat Windows and the xbox OS. So certain function calls (required by Steam) are not supported by xbox OS. So it won’t be a traditional layer like WINE or Proton. Just enough for certain gamestore applications to run (Epic?).

going to be a fixed hardware Windows PC with a custom interface replacement and probably all the unnecessary services ripped out of it.

I hope for this too. But how will traditional Xbox games run if it’s just Windows? Will it have a built-in emulator running on top of Windows? Also, it will invite people to hack the device since it’s a standard Windows OS. I doubt MS wants their next xbox to be so open, given their history regarding MS Store.

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