a Steam Machine can switch to GNOME and run a completely free game.
Fortunately humblebundle is starting to encroach on the Steam situation by noticeably not requiring DRM on a majority of their titles and so does desura.
And you can run these games on your Steam Machine. A Steam Machine runs a free operating system, which is noticeably less evil than a console from a company that has in the past compared startup developers to contestants on American Idol .
Neither of those examples are correct from the Stallman perspective.
I don't believe that the Stallman perspective as you characterize it is the most efficient in a market heavily distorted by video games. The purpose of the GNU project is to provide a source-compatible alternative to the UNIX system under a free software license. U.S. federal courts have ruled that reimplementing a platform from its specification does not infringe (Oracle v. Google). But on the other hand, courts are cracking down on this practice of reimplementation in the field of video games (Tetris v. Xio).
It's already making a compromise by merely being in those situations, merely for the sake of (reason omitted because you sure as hell didn't provide one).
I understand that you are unsatisfied with the level of detail provided in my previous comment. Please first allow me to reason by process of elimination. There are three ways to switch from proprietary applications on a proprietary platform to free applications on a free platform. The first is to replace the applications first. The second is to replace the platform first. The third is to replace both at the same time. In practice, the third has caused interoperability issues that the vast majority of users have found unacceptable because there's no way to do it gradually. The most gentle method of introducing free software, and likely the most successful method is a mix of the first and second methods over four steps.
The first step is to consider what free platforms could eventually replace your proprietary platform. Theoretically, ReactOS is closer to Windows than GNU/Linux is, but I haven't seen evidence that ReactOS is anywhere near the maturity of GNU/Linux.
The second step is to phase out applications exclusive to one platform in favor of applications compatible with the chosen free platform. For example, replace applications exclusive to Windows that do not run in Wine with applications that are ported to GNU/Linux or run in Wine. Preferably these are free applications such as Firefox, GIMP, and LibreOffice, but if no free application is available at the moment, that can wait. Even the Free Software Foundation has realized that a transition has to be done in steps and has begun to compile a list of free applications for Windows as one step.
The third step is to switch to a free platform and bring compatible applications with you. When I switched to GNU/Linux on my laptop, this was relatively painless because I had become comfortable with the result of the second step.
Finally, phase out the proprietary applications. This final phase may never finish if one's workload includes video games.
MS needs to make windows GPLv3
That'd be fine if you could put your money where your mouth is. Implementing your suggestion would cost half of Microsoft's market cap (currently $307.25 billion, therefore $153.63 billion).
Could they still make money in that situation? Absolutely.
Could they make as much money as they used to? I'm skeptical. Such a decision to cut expected earnings per share so drastically would likely make Microsoft the defendant in a shareholder lawsuit.