Sarcastic Gamer freelance reporter Krithel has uncovered what would seem to be a world-wide exclusive scoop that affects two major players in the gaming industry. Without further ado, here is krithel’s report:

Sources within both Microsoft and Valve have said that, for the past few weeks, the two companies have been discussing the possibility of merging Steam and Games for Windows Live. This news comes after the commercial failure of Microsoft’s attempts to bring the success of Xbox Live to the world of PC gaming. Although details of the merger and the time frame are still unknown, it has been stated that a deal has been made between the two companies, which involves Games for Windows being added to the Steam program.

More of this juicy rumor after the jump…

It’s believed that this will allow the two companies access to each other’s associates, so we may see Steam’s games catalog grow by four titles, when this change occurs. This change also brings about questions as to whether we may be seeing a version of the Steam client eventually coming to Xbox Live.

Rumors have also sprung up that this may be the start of a take-over of Valve by Microsoft, although the sources state that there has been no discussion of this, and the deal is in no way foreshadowing this. Plans to relocate Valve to Redmond, WA are being reported as “purely coincidental” at this point.

As usual, if we hear more information, you’ll be the first to hear it. Stay tuned to Sarcastic Gamer for all the news you won’t read anywhere else!