Steam is a very powerful market place, this piece proves it. In any case, I suspect the reason for their lack of success is perhaps their game didn't fit the console controller or the market place on Xbox Live.

Very. Everybody would be on Steam if that were the case, and would ignore the consoles as a waste of time and money. But they don't. Indeed, consoles are repeatedly scoring new exclusives and new ports from other services, so they must, at the very least, be offering something pretty good. In the end, the devs want to make money, and will go with the platform that provides most chance of this, whilst simultaneously providing the working environment they are willing to endure (sometimes one of those is more important than the other, depending upon the dev). Again, Steam can't be that much better, if it is even better, because if it was, XBLA and PSN wouldn't have so many new titles popping up on their services, but they do. New games every single week is not a small amount of product.

Also, I find it a bit odd to be arguing this, as I'm quite the advocate of Steam. I like it a lot.