Your new Steam Controller will not work with the Xbox app and PC Game Pass unless you use third-party software on Windows
Valve’s new $99 Steam Controller has limited compatibility when used outside the Steam ecosystem on Windows. Games launched through the Xbox app or other third-party launchers fail to recognize the controller as a valid input device, forcing games to default to mouse and keyboard controls and rendering the Steam Controller unusable for gameplay.
The controller includes a fallback feature called “lizard mode” that provides basic Windows desktop navigation through standard cursor controls, but this does not extend to actual game functionality outside the Steam environment.
The PC gaming community has already begun developing third-party software workarounds to address this compatibility gap. These community solutions offer alternatives for users who want to use the Steam Controller with games from the Xbox app or other platforms.
This limitation significantly impacts the controller’s versatility for PC gamers using multiple gaming platforms. While the hardware functions as intended within Steam, its inability to work natively with Microsoft’s Xbox app—where Game Pass titles are available—substantially reduces its appeal for those seeking a unified controller solution across different launchers.
Users wanting to use the Steam Controller with Xbox app games will currently need to rely on community-developed tools until Valve or these services provide official support.