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Potential marketshare - less than OS X
How big a threat to Microsoft - HAHAAHAAHAHHA not even a thread
Would people buy into it apart from about 10 million hardcore steam users? NO
Do Microsoft even care? NO
If they do how can they challenge them? -
Would they charge for the OS? it's confirmed it's going to be free
How much if yes? -
Would Microsoft launch a rival steam on Windows? They tried with GFWL and was an epic fail.