Valve has introduced a new version of its Steam Machine console, positioning it as a competitor to Nintendo, Xbox, and PlayStation as the company pushes further into living room gaming. The device, scheduled for release in early 2026, is designed to run PC games on a television and can also function as a general-purpose computer. Pricing has not yet been disclosed, and Valve said additional details will be shared closer to launch.
The new Steam Machine follows a 2014 model of the same name that struggled to gain traction in a market shaped by established console makers. That earlier iteration started at $499 (£300). Valve described the new model in a video announcement as “a powerful gaming PC in a small but mighty package,” saying it can support 4K resolution and 60 frames per second. The device runs on SteamOS, the company’s Linux-based operating system, and uses AMD graphics processors. Valve said it can verify which games on the Steam storefront are compatible with the console before purchase, aiming to simplify performance expectations for buyers.
Steam, launched in 2003, has become the largest distribution platform for PC gaming. At the time of writing, Valve’s own metrics showed around 25 million users online, with six million actively playing games. Analysts have questioned how much of that audience is likely to move to dedicated hardware, referencing skepticism from the original Steam Machine’s debut. At the time, observers said its design and price would mostly attract Steam “power users.”
Industry expert Christopher Dring said the new device may appeal primarily to existing Steam customers who want a living room setup. He compared the potential audience to the Steam Deck handheld, which he described as successful but “niche,” with an estimated four to five million players, most of whom were already Steam users.
Valve also unveiled the Steam Frame, a wireless virtual reality headset that it described as a “streaming-first” device. The headset runs SteamOS itself and features a system that delivers the highest visual quality only to the portion of the screen the user is looking at. Valve said the approach offers a technical advancement in VR performance.
The company’s expanded hardware lineup comes during a period of shifts among major console makers. Microsoft has centered its gaming strategy on the Xbox Game Pass subscription service. Sony’s PlayStation 5 remains the top-selling console, though players continue to speculate about when its successor will arrive. Brandon Sutton, an analyst at Midia Research, said Valve’s announcements reflect its understanding of industry trends, noting that the market conditions are favorable for a hybrid device that blends PC gaming with console-style convenience.
Featured image credits: Freepik
For more stories like it, click the +Follow button at the top of this page to follow us.