Valve expanded its hardware lineup on Wednesday, unveiling a new Steam PC/console hybrid, next-gen controllers and a new Steam VR headset. The new line of Steam hardware will launch in early 2026, which will mark Valve’s return to the console business with Steam Machine. The PC/console hybrid, a roughly six-inch cube that looks like an Xbox Series X cut in half, is the most interesting of the new devices. It may also be a sign of what home gaming consoles will look like in the near future.
Steam engines and other consoles and handheld devices
Able to run AAA games at 4K at 60fps, the Steam Machine will tap into a rapidly changing gaming hardware market that accommodates traditional home consoles like the PlayStation and Xbox, hybrid handhelds like the Nintendo Switch and Switch 2, and a host of Windows-based handheld PCs from OEMs like Asus, Lenovo, and MSI.
Valve’s new hybrid console runs SteamOS out of the box, but allows users to install an operating system of their choice. If they wanted, people could run Windows on the console and access other PC game storefronts from Microsoft, Epic Games, and others. Essentially, the new Steam Machine functions much like some modern Windows-based handheld devices, allowing users to access their Steam library, the Xbox app on their PC, and other game launchers from game makers like Ubisoft and EA.
A steam engine is a cube about six inches
Photo Credit: Valve
Next-gen Xbox
But Valve’s new computer game cartridge may be more like a next-generation Xbox console than just a modern handheld device. Microsoft is A new Xbox is reportedly being prepared and it will be a PC/console hybrid, Runs Windows with the Xbox interface on top. The company tested the method with a new Xbox-branded gaming handheld device made by Asus. ROG Xbox Ally and Xbox Ally X Launched in October, it runs Windows 11 but features a new Xbox full-screen experience designed to bring an intuitive console-like interface (similar to SteamOS) and reduce Annoying Windows operations.
In an interview after the launch of ROG Xbox Ally, Xbox president Sarah Bond said that Microsoft’s approach to Xbox-branded handheld devices will, to a certain extent, guide the thinking behind the next-generation Xbox home console. Microsoft CEO Satya Nadella also said last month that the company was considering a hybrid PC/console approach for the next Xbox and would “revisit” the idea of a console as a PC.
So with the Steam Machine, Valve has essentially built the next Xbox before Microsoft did: a hybrid PC/console that can run Windows, Steam, and everything else. Steam Machine could also start a race to create more PC/console hybrid games, much like Steam Deck did for handheld devices.
New Steam Series Devices
Photo Credit: Valve
Will there be more PC/console hybrids in the future?
With the success of the Steam Deck, OEMs such as ASUS, MSI, and Lenovo quickly jumped on the handheld PC bandwagon. We’ve had two generations of Windows-based gaming handhelds and a new Xbox-branded handheld with a console-like Xbox interface. It’s not hard to imagine other manufacturers considering PC/console hybrids after the launch of Steam Machine, especially considering Asus, Lenovo, and MSI already make PCs. They quickly designed a box, put a Windows PC in it, ran a console-like interface on it (Xbox FSE, SteamOS), and started competing with Steam machines.
However, interest in PC/console hybrid games depends on pricing. Valve has yet to reveal the price of the Steam Machine, and Microsoft said the next Xbox will be a “very premium, very high-end curated experience,” suggesting it could be priced higher. The parent company of Xbox has launched the Xbox Ally X, a $1,000 handheld console, and the price of the next-generation console is likely to rise.
However, in an era when Windows handheld computers cost $1,000, the Steam Deck still maintains a pricing advantage. In the US, the LCD model is priced at $399 and the OLED model is priced at $549. If the company prices the Steam Machine aggressively, it could become a popular home console option and arrive before the next generation of Xbox and PlayStation. And Valve has first-mover advantage. Just as the Steam Deck sparked the handheld race, the Steam Machine heralded the craze for PC/console hybrid gaming. A next-gen Xbox could be in the queue.
