Valve announces new Steam Machine console in bid to rival PlayStation and Xbox

The new Steam Machine is a home console in the vein of the PlayStation 5 and Xbox Series, designed to play games through a TV.

While it isn’t Valve’s first attempt to enter the console space, they launched the original Steam Machine in 2014; this does appear to be the company’s first serious attempt to compete with Microsoft, Sony and Nintendo’s console monopoly.

That original Steam Machine launched at $499 (£300) but this updated one is likely to cost more.

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The console will go on sale in early 2026 and is described as a “powerful gaming PC in a small but mighty package."

Valve said the custom PC is "optimised for gaming" and will be “6x more powerful” than its handheld Steam Deck.

Like the Steam Deck, it will be powered by Valve’s Linux-based SteamOS and feature specs slightly less powerful than those found in a PlayStation 5.

Alongside the Steam Machine, Valve announced its new virtual reality headset, dubbed the Steam Frame.

The goggles will be able to livestream games from a PC while also running some less demanding games natively.

A third new product, a Steam Controller, was also announced.

Prices for any of the new products are yet to be announced.