Does Microsoft see Valve as a competitor in the battle for the living room? Not really. Don Mattrick, Xbox president of Interactive Entertainment, has stated rather emphatically that although Valve are clearly looking to innovate in that space, Microsoft's main competition will arise from more traditional, familiar names.
Asked straight out by the Verge as to whether or not he viewed Valve as a competitor, Mattrick simply answered "no" beforegoing on to admit that Gabe Newell and his company are "doing some innovative stuff".
"The scale of products and things that are being brought to market are probably a little bit richer when I look at Sony, Nintendo, Apple, and Google," Mattrick.
Then again, Newell hasn't exactly been dishing out the praise when it comes to Microsoft and their products, and he himself admitted that it's Apple whom Valve have in their sights.
For what it's worth, Mattrick does have a healthy respect for Newell, who received a BAFTA Fellowship award this week.
"I love Gabe, I was there for his lifetime achievement award so it's wonderful to see what [Valve] are creating."