The Steam Machine is a black box that can act as a home console alongside a PC.
Valve, the company behind the PC gaming platform Steam, has unveiled a new console that will rival Nintendo, Xbox, and PlayStation.
The Steam Machine is a home console designed to allow gamers to play PC games on their TVs – although it can also be used as a computer.
It’s a spiritual sequel to a device of the same name that launched in 2014 but failed to make a mark in a market dominated by the big three gaming companies. At the time, these consoles started at $499 (£300)—but Valve’s latest version is expected to cost much more.
The company said the Steam Machine will be available for sale in early 2026, although pricing has not yet been announced.
The company says more details will be provided closer to the exact release date, which is currently unknown. Since Steam was launched by Valve in 2003, it has become the world’s largest distribution platform for PC gaming.
According to the platform’s own metrics, at the time of writing, there were about 25 million Steam players online, and six million people were playing games.
But whether its new hardware can match Steam’s success remains to be seen, with the devices launching next year.
When the Steam Machine launched in its original, rudimentary form a decade ago, analysts doubted its relevance, saying its price and capabilities would only appeal to Steam “power users.”
In a video announcement, Valve described the new console as “a powerful gaming PC in a small but powerful package.”
The company argues that the device is “optimized for gaming” compared to other PCs, as the company can tell you which games will run on it on its vast digital storefront before you buy it.
Valve said that powered by the Linux-based SteamOS operating system and an AMD graphics processor, the new Steam Machine can support 4K resolution and 60 frames per second.
But industry expert Christopher Dring said its potential and appeal may be limited, comparing it to the company’s handheld Steam Deck console, which has a “lucrative but niche” audience of “around four to five million players.”
“Most of them were already Steam customers who wanted to take their PC games with them,” he said.
“I believe the Steam Machine will be similar – it will likely attract a lucrative audience of existing Steam players who want to play their games in the living room.”
Like all new consoles, the Steam Machine has its own controller – which, unusually, has two large trackpads at the bottom that function like a computer mouse.
In an unusual move, Valve has also announced more hardware—the Steam Frame virtual reality (VR) headset.
This device is completely wireless—and described as a “streaming-first” device—but it’s also a PC running SteamOS.
And it also claims to be a technological leap in the VR field, with the headset displaying the highest-quality graphics only in the parts of the screen the user sees.
With the extensive announcements of the new device, Valve hopes to compete with its more established competitors.
In recent years, Microsoft-owned Xbox has placed its subscription service, Game Pass, at the center of its offerings to gamers—some say at the expense of its console crown.
Meanwhile, the PS5 has been the best-selling console for some time, but fans are asking when its successor will hit the market.
Brandon Sutton, gaming industry analyst at Media Research, said the announcements show Valve has a “good understanding of the gaming market’s direction and gamers’ desires.”
With Sony and Microsoft moving away from console exclusives and the prevalence of game streaming services, there’s never been a better time for a PC-console hybrid.
