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A powerful gaming PC in a small but mighty package
X/ Valve
Valve launches new Steam Machine combining PC power with console gaming to rival PlayStation and Xbox
Nov 13, 2025
Highlights:
- Steam maker Valve announces the return of the Steam Machine, due in early 2026
- The new console runs on SteamOS with AMD graphics and supports 4K gaming
- Analysts say it may appeal mainly to dedicated Steam players
Valve returns to the living room
Valve, the gaming company behind the world’s largest PC gaming platform Steam, has announced a new version of its Steam Machine, a hybrid device designed to bring PC gaming to the television.
Described by the company as “a powerful gaming PC in a small but mighty package,” the new Steam Machine aims to bridge the gap between traditional consoles and high-performance PCs.
The device, set to launch in early 2026, allows players to access and play their Steam library directly on their TV. It can also function as a fully capable personal computer.
Pricing has yet to be revealed, though industry analysts expect it to cost more than the $499 (£300) starting price of the 2014 model, which failed to gain traction in a market dominated by PlayStation, Xbox, and Nintendo.
What’s new in the Steam Machine
The new Steam Machine runs on Valve’s Linux-based SteamOS and features AMD graphics processors. It supports 4K resolution at 60 frames per second and, according to Valve, is “optimised for gaming” because users can see which Steam titles are fully compatible before purchase.
Valve has also introduced an updated controller with two trackpads positioned where traditional joysticks would normally sit, designed to replicate the precision of a computer mouse.
The device’s compact design and focus on seamless gaming performance suggest Valve is targeting players who want PC-quality gaming without the complexity of a desktop system
Valve expands into VR
In addition to the Steam Machine, Valve also announced a new wireless virtual reality headset called Steam Frame.
Unlike traditional headsets that rely on an external computer, Steam Frame runs SteamOS independently and prioritises “streaming-first” capabilities. It also features adaptive graphics that render high-quality visuals only in the areas a user is actively viewing a movie, which could improve both performance and comfort.
Analysts weigh in
Despite excitement around Valve’s return to home gaming, experts remain cautious about its mainstream potential.
Christopher Dring, an industry analyst, said the Steam Machine would likely attract the same kind of niche audience as Valve’s handheld Steam Deck.
“Most of those players were already Steam customers wanting to take their PC games on the go,” Dring said. “The Steam Machine will appeal to the same kind of enthusiasts who now want that experience in their living room.”
Meanwhile, Brandon Sutton from MIDiA Research said Valve’s latest announcements show “a strong grasp of where the gaming market is headed.”
“With Sony and Microsoft moving away from exclusives and game streaming on the rise, it’s the right time for a PC-console hybrid,” Sutton added.
What lies ahead
Valve’s re-entry into the console space comes as competition intensifies between the gaming giants. Microsoft continues to expand its Game Pass ecosystem, while Sony’s PS5 remains the best-selling console globally.
Whether Valve can turn its strong PC base into success in the living room will become clear when the new Steam Machine arrives next year.
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