Xbox VP Phil Harrison has downplayed the potential rivalry between Xbox and Steam.
Last night the global PC download giant announced it will be entering the living room space with a number of machines that will use the new SteamOS software.
But Xbox has dismissed the potential new competitor, reiterating the advantages of Xbox.
"I don’t think it’s a threat," he told MCV at Eurogamer Expo.
"I have great admiration for Valve, I think they are a really innovative company. They have done some really smart things. The Steam platform for one. They’re actually based close to our headquarters in Seatle. We have a pretty good relationship with them.
"We think that the Xbox One combination of business model, developer ecosystem and retail support, will make our platform very successful. It is unclear to me, until I see the product and understand all of their announcements, exactly what it means."