The feature is available in preview right now, and is launching with support for 40 games including Hollow Knight: Silksong and Fortnite.
Mike Ybarra also thinks that it would be great for Xbox if it left Windows behind to instead use SteamOS for its future hardware releases.
Dan Houser spoke about his time working on the 2001 title, which would go on to revolutionise the gaming industry with its open world.
Analysts have also noted that Microsoft has been struggling with Xbox console sales, and that Steam Machines could cause another dent.
The update also brings with it new versions of drivers and firmwares for system critical things like GPU and power management systems.
While Microsoft has yet to announce the showcase, it reportedly features Bloober Team's Silent Hill 2 for Xbox Series X/S.
Asus CFO Nick Wu believes that there is demand in the market for premium, high-end handheld gaming PCs that the ROG Ally devices can fill.
The full-screen UI for handhelds offers a more console-like experience and will roll out to other OEMs in "the coming months."
The 1 percent growth in Xbox games and services was referred to by Microsoft as being "relatively unchanged" over previous quarters.
Satya Nadella also spoke about innovation being helped by companies keeping an eye on margins, since that's how they get funded.
Mike Ybarra noted in social media platforms that games tend to be long-form sources of entertainment when compared to TikTok posts.
Microsoft is reportedly planning to remove distinctions between PC Game Pass and the more expensive Ultimate tier for its next-gen Xbox.
It will reportedly offer the usual Xbox ecosystem while allowing players to access Windows and titles on other storefronts.
"We are competing more and more with everything from TikTok to movies," said the president of Xbox game content and studios.
Spencer noted that studios that want to use AI-based tools for creative works are free to do so, but there is no top-down mandate.
How does Team Ninja's latest entry in the series measure up to its greatest? Find out here, as we dive into their biggest differences.
Reports have indicated that the bill of materials for Microsoft's next-gen console is well over $999, compared to $650 for Xbox Series X.
According to a new report, Xbox's acquisitions of major gaming companies has brought in increased scrutiny from executives.
The development kits for Xbox Series X/S feature more powerful hardware than the consumer models to help with game development.
Sarah Bond also spoke about how the gaming audience has seemingly evolved beyond wanting games that might be console-exclusive.
