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Yes—if everyone is playing the Steam edition in a standard Steam-to-Steam world. Obsidian added Steam Native Support in Grounded Patch 1.4.5 on September 30, 2024. You can host or join ordinary multiplayer through Steam without signing in to a Microsoft account. That change does not cover crossplay, Shared Worlds, or Playground uploading and downloading, which still use Microsoft/Xbox services.

Obsidian’s announcement is available in the Patch 1.4.5 notes.

What changed in Grounded multiplayer?

Patch 1.4.5 introduced two networking modes for the Steam version: Steam Native State and Crossplay State. Steam Native uses Steam’s friend network for standard multiplayer, removing the Microsoft-account sign-in requirement for Steam-only groups. Players can host a normal world or join a Steam friend’s world without linking an account.

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This is a reduction in the requirement, not a removal of Microsoft integration from the entire game. The game still needs Microsoft services for several online features.

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What works without a Microsoft account?

  • Hosting a standard multiplayer world for Steam friends.
  • Joining a standard world hosted by a Steam friend.
  • Using Steam friends for discovery and invitations, subject to ordinary Steam, firewall, NAT, and game-connectivity conditions.
  • Playing with other Steam users who are also in Steam Native State.

The account-free option applies to standard Steam-to-Steam sessions. It does not make Steam Native a cross-platform mode.

What still requires Microsoft sign-in?

Feature Microsoft account required? Important qualification
Standard Steam-to-Steam multiplayer No Everyone must use Steam Native State.
Crossplay with Xbox, PlayStation, Nintendo Switch, Microsoft Store PC, or another non-Steam player Yes Use Crossplay State and link a free Microsoft/Xbox account.
Shared Worlds Yes These remain tied to Microsoft/Xbox functionality.
Uploading or downloading Playgrounds Yes Microsoft sign-in is required for online sharing.
Previously downloaded Playgrounds Potentially available while unsigned in Obsidian’s Steam announcement says previously downloaded content may remain accessible offline; this is not full Playground functionality. See the Steam announcement.

A Microsoft account is free for crossplay, but console players may also need their platform’s own online multiplayer subscription. The exact requirement varies by platform and region; Obsidian documents those caveats in its cross-platform support guide.

Steam Native State versus Crossplay State

Steam Native State

Choose Steam Native when every participant owns the Steam edition and nobody needs cross-platform play, Shared Worlds, or online Playground sharing. It is the mode to use when you want standard multiplayer without a Microsoft account.

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Crossplay State

Choose Crossplay when anyone is on Xbox, PlayStation, Nintendo Switch, Microsoft Store PC, or another supported non-Steam platform. Crossplay State is also the appropriate mode for Microsoft-dependent shared features.

All players who need to see and join one another must use the same state. Two Steam players can therefore own the same game and still fail to find each other if one is in Crossplay State and the other is in Steam Native State.

How to play with Steam friends without linking an account

  1. Launch Grounded from Steam.
  2. At the main menu, set the networking option to Steam Native State, not Crossplay State.
  3. Have every Steam player select the same state.
  4. Open the multiplayer option.
  5. Host a standard online world, or join the host through the Steam friends list.

The official announcement confirms the state toggle and Steam-friend workflow, but does not establish one universal keyboard shortcut or controller button for every build. Use the control shown by your current game version.

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How to enable crossplay again

To play with a console or Microsoft Store PC friend, switch to Crossplay State and complete Microsoft account linking. Obsidian’s documented setup is:

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  1. Launch the game and open Options.
  2. Turn Enable Crossplay on.
  3. Continue when the prompt appears.
  4. Follow the displayed code and sign-in instructions.
  5. Sign in with the intended Microsoft account.
  6. Check that the associated Xbox Gamertag appears at the top-right of the main menu.

Only one Microsoft/Xbox account can be linked to the game, according to Obsidian’s cross-platform documentation. Choose carefully if you use multiple accounts.

How to unlink a Microsoft account

If you only play with Steam friends, unlinking is optional. The menu path documented by Obsidian is:

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Options → Game tab → Unlink Microsoft Account

Unlinking limits or disables Microsoft-dependent features, including crossplay, Shared Worlds, and Playground upload or download. Re-link the intended account if you later need those services, and confirm which account is connected before removing it.

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Troubleshooting Steam multiplayer

Your Steam friend does not appear

  • Confirm both players are using the Steam edition.
  • Confirm both are in Steam Native State, not one in Crossplay State.
  • Verify that you are Steam friends and both appear online.
  • Make sure the host has created an online multiplayer session.
  • Close and relaunch the game to refresh the Steam connection.
  • Check firewall, NAT, router, and Steam connectivity issues if the friend remains invisible.

You can play with Steam friends but not an Xbox friend

That is expected when you are unsigned in or still using Steam Native State. Switch to Crossplay State and complete the Microsoft account setup above. Steam Native does not support mixed Steam/non-Steam groups.

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The game still asks for a Microsoft account

Check whether Crossplay is enabled, whether the game is in Crossplay State, or whether you are trying to use Shared Worlds or Playground sharing. Also verify that you are running the Steam edition rather than the Microsoft Store/Xbox version; the account-free change is specifically for standard multiplayer on Steam.

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Features disappeared after unlinking

That is the expected trade-off. Re-link the Microsoft account if you need crossplay, Shared Worlds, or online Playground sharing.

Is Game Pass required?

No. Game Pass is a separate access route for the Xbox and PC ecosystem and is not needed for Steam-to-Steam multiplayer. The official Grounded Xbox page lists the game’s supported platforms and Game Pass availability, but a Steam group can use Steam Native multiplayer without an Xbox subscription.

Which version of Grounded does this apply to?

This article concerns the original Grounded, including its Steam edition. It does not describe Grounded 2, whose account and networking behavior is a separate matter.

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