Tim has nothing to worry about. Microsoft was never a player in PC gaming and never will be. Steam is PC gaming. Microsoft has tried a couple of times to take on Steam and have failed spectacularly. Microsoft should either try and buy Steam (although Gabe would never sell) or embrace it.
Well, that's not entirely true. A decade ago Microsoft was a big player in PC gaming. Microsoft game studios made some big sellers like age of empires, mechwarrior, freelancer, etc, but was dismantled after their xbox initiative took off.
What I think is weird is it seems like just a few years ago, Microsoft was embracing Steam. They released (or rather, allowed some team to port and publish) remasters of Rise of Nations and Age of Empires II on Steam, with some really great Steam integration too.
Guess that was before someone at Microsoft came up with this UWP idea and somehow roped gaming into it.