Valve, the company behind the world’s largest PC gaming platform Steam, has announced a new console designed to compete with Nintendo, Xbox, and PlayStation.
The updated Steam Machine lets gamers play PC titles on their TV while also functioning as a full-fledged computer. This new version is a spiritual successor to the original 2014 Steam Machine, which struggled in a market dominated by major console players.
While the original device started at $499 (£300), Valve has not yet revealed pricing for the latest model, which is expected to be significantly higher. The console is set to launch in early 2026, with full details to be released closer to the date.
Valve emphasizes that the Steam Machine is “a powerful gaming PC in a small but mighty package,” optimized for gaming performance. The console runs on Linux-based SteamOS and AMD graphics, supporting 4K resolution at 60 FPS. Valve also highlights that gamers can check compatibility for Steam games before purchase, a major advantage over traditional PCs.
Industry analysts, however, suggest the console may primarily appeal to existing Steam enthusiasts, similar to the handheld Steam Deck, which attracts around four to five million dedicated users.
In a surprising expansion into VR, Valve also introduced the Steam Frame, a fully wireless VR headset powered by SteamOS. The device focuses on streaming-first performance and uses advanced graphics rendering to display ultra-high-quality visuals only where the user is looking, marking a potential breakthrough in virtual reality technology.
With these announcements, Valve is positioning itself to rival major console players. Xbox focuses heavily on Game Pass subscriptions, while PS5 remains the best-selling console, with fans eagerly awaiting its successor. Analysts say Valve’s new hardware demonstrates a clear understanding of gaming trends and what modern players want.
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