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I doubt it. This isn't the first time MS has tried to make a console-like experience on PC. It didn't go well last time, and although this looks like a more concerted effort, there's still an amount of mistrust surrounding MS over GFWL and Steam has a ridiculous user base now. It's going to be difficult for MS to get back that market share when users have the majority of their library tied to their Steam account.

The good thing about PC though, you can have multiple services. I use Steam for most third-parties and Origin/uPlay for exclusives.