The Microsoft Store really isn't a bad option to buy games from in 2025, unless you have a exFAT formatted drive.
If you don't want AppX-compiled games, it's trash. If you want some sense of organization, it's trash.
You have no launcher requirement, you get the full Xbox Live feature-set, and low latency cloud gaming is included for a very low price, so you can continue where you left off on your phone or TV.
You don't get Quick Resume, and last I checked xCloud had higher latency and worst image quality than PlayStation's cloud. Even if it's gotten better over time, it still doesn't compare to GeForce Now and that gets all the same big games you can get through xCloud, so why choose the inferior option when they're both on PC?
Launching the games using Xbox FSE also saves a lot of VRAM - useful for 8GB cards. I would say they are the closest to Steam out of all the alternative storefronts.
Too bad for MS they have the complete opposite of optics and reputation vs Steam, and no amount of shilling or astroturfing from media is going to change that sentiment anytime soon. If ever.
Microsoft only charges a 12% commission fee vs. Valve's 30%, and Valve are preparing to launch a $800 PC-console with less power than Microsoft's 5 year old console.
1: Valve charge less than 30% depending on profile of the dev/pub who is on Steam, which takes into account their sales track record. Microsoft's also a $4 trillion company; they could drop their commission fee to 1% and it'd make no difference to their bottom line since gaming is not their main difference. Not the case with companies like Valve.
A bit of a bad move to use that against a way smaller company that has been consistently providing better quality in the user experience for decades to justify their flat higher commission rate (which again, is lower depending on various factors with certain publishers).
2: We have no idea how much Steam Machine will cost.
3: Power doesn't mean much anymore. Good luck getting a Magnus-like device with 48 GB of RAM for anything less than $1800 with the way things are going. Steam Machine is also still more capable than 70% of setups among Steam users, so for the majority likely to buy it, it'll be a good enough upgrade.
How much has more power helped Microsoft over the past 25 years in gaming? Maybe OG Xbox it helped, and the early 360 years when its better GPU & straightforward programming model was preferable to the hellscape of early PS3. But it's been a marketing point at best ever since that has done nothing to help them and in fact it's hurt them this gen because the difference between the "more powerful" Series X and PS5 was barely noticeable. PS5 would even outperform the "stronger console" multiple times among big titles.
I'd say, maybe One X was the last time having more power was some sort of substantive benefit for Microsoft, but that didn't last at all, and it never had enough time to cement into something longer-lasting for the brand.