diff --git a/src/main.cpp b/src/main.cpp
index b21f190..fff2117 100644
--- a/src/main.cpp
+++ b/src/main.cpp
@@ -216,6 +216,11 @@ int main(int argc, char **argv)
 
 	wlserver_init(argc, argv, g_bIsNested == true );
 
+	setenv("DISPLAY", wlserver_get_nested_display_name(), 1);
+	setenv("GAMESCOPE_WAYLAND_DISPLAY", wlserver_get_wl_display_name(), 1);
+
+	startSteamCompMgr();
+
 	wlserver_run();
 }
 
diff --git a/src/wlserver.cpp b/src/wlserver.cpp
index b3fcd9c..78fe3e4 100644
--- a/src/wlserver.cpp
+++ b/src/wlserver.cpp
@@ -113,17 +113,6 @@ const struct wlr_surface_role xwayland_surface_role = {
 static void xwayland_ready(struct wl_listener *listener, void *data)
 {
 	bXwaylandReady = true;
-
-	setenv("DISPLAY", wlserver.wlr.xwayland_server->display_name, true);
-
-	g_XWLDpy = XOpenDisplay( wlserver.wlr.xwayland_server->display_name );
-	if ( g_XWLDpy == nullptr )
-	{
-		wlr_log( WLR_ERROR, "wlserver: failed to connect to X11 server\n" );
-		exit ( 1 );
-	}
-	
-	startSteamCompMgr();
 }
 
 struct wl_listener xwayland_ready_listener = { .notify = xwayland_ready };
@@ -583,8 +572,6 @@ int wlserver_init(int argc, char **argv, bool bIsNested) {
 
 	wlr_log(WLR_INFO, "Running compositor on wayland display '%s'", wlserver.wl_display_name);
 
-	setenv("GAMESCOPE_WAYLAND_DISPLAY", wlserver.wl_display_name, 1);
-
 	if (!wlr_backend_start( wlserver.wlr.multi_backend ))
 	{
 		wlr_log(WLR_ERROR, "Failed to start backend");
@@ -601,6 +588,13 @@ int wlserver_init(int argc, char **argv, bool bIsNested) {
 		}
 	}
 
+	g_XWLDpy = XOpenDisplay( wlserver.wlr.xwayland_server->display_name );
+	if ( g_XWLDpy == nullptr )
+	{
+		wlr_log( WLR_ERROR, "wlserver: failed to connect to X11 server\n" );
+		return 1;
+	}
+
 	wlr_output_enable( wlserver.wlr.output, true );
 	wlr_output_set_custom_mode( wlserver.wlr.output, g_nNestedWidth, g_nNestedHeight, g_nOutputRefresh * 1000 );
 	wlr_output_commit( wlserver.wlr.output );