Microsoft is taking a major step towards unifying PC gaming by adding support for Steam and Battle.net titles within its Xbox app for Windows.

Starting this week, Xbox Insiders can test a new aggregated game library that brings together games from multiple storefronts in one unified location.

The feature allows players to view and launch Steam and Battle.net games directly from the Xbox app’s ‘My Library’ and ‘Most Recent’ sections.

The update is part of Microsoft’s broader strategy to position the Xbox app as the central hub for PC gaming and to better compete with platforms like Steam and Valve’s SteamOS.

Currently available through the free Xbox Insider Program, the update enables users to customise which storefronts are visible, with Microsoft confirming that additional platforms will be supported over time.

The rollout comes ahead of the Australian launch of new Windows-based handhelds like the ASUS ROG Xbox Ally and Ally X later in 2025. With these Windows 11-powered devices designed for portable gaming, Microsoft is clearly looking to simplify the user experience by unifying game libraries across multiple platforms.

While no local pricing has been confirmed for the new devices, the original ROG Ally launched in Australia at around A$1,299, giving some indication of what to expect for future Xbox-branded portables.

By combining Xbox Game Pass, third-party game libraries, and handheld hardware, Microsoft is positioning itself as a more open alternative to the Steam Deck.

The new Xbox app experience is expected to roll out more broadly later this year.