It doesn't matter how many users Steam has.
According to Microsoft, MAU's are more important than anything else. :p
The platform is bleeding badly. AAA publishers are leaving, and indies are atrophying. A tiny fraction of the games on Steam make up most of the sales.
https://www.pcgamer.com/gdcs-realistic-talk-about-game-sales-on-steam-paints-a-grim-picture/
There's a reason we're seeing Switch ports that outsell their Steam versions in a fraction of the time.
This article says that it's very hard to stand out with your games, and yeah, I can understand that. There's a huge amount of high quality games on Steam, compared to a much, much smaller selection of (indie) games on Switch. While some people like to blame this on the huge amount of bloatware on Steam, the dev in the article literally says that even without the crap, his game wouldn't had any chance. Your game has to stand out to get huge sales on Steam. But this really isn't "Steam bleeding out", because in fact there are more good games on Steam than ever.
I don't think there is that much they can do actually.
There's plenty of stuff they can do:
- stop charging €70 for AAA games
- don't put (the best) discounts behind the xbox live gold paywall
- stop selling games as encrypted "apps", we need file access for all games
- allow mods and free community content for ALL games, don't rely on developer support
- allow full customization for every game. Now you can't even choose the desired resolution in fullscreen mode for UWP games
- make a separate game client for core games with features PC gamers want
- dump or redesign the Xbox app, design a decent overlay for online interactions, chat etc
- allow devs to generate game keys to sell in competing 3rd party webstores
- embrace existing popular PC services like twitch, discord, Steam etc instead of trying to compete with them
- ...