Valve, the company behind the PC gaming platform Steam, has unveiled a new console that can compete with Nintendo, Xbox and PlayStation.
The Steam Machine is a home console designed to allow gamers to play PC games on their TV, although it can also be used as a computer.
It's a spiritual sequel to the 2014 device of the same name, which failed to penetrate a market dominated by the big three gaming giants.
Prices for these consoles then started at $499 (£300), but Valve's latest iteration is expected to cost much more.
According to the company, the Steam Machine will go on sale in early 2026, but prices have not yet been announced.
The company says that this and more detailed information will be provided closer to the exact release date, which is also unknown at this time.
Since Valve launched Steam in 2003, it has grown into the world's largest PC game distribution platform.
According to the platform's own metrics, at the time of writing, approximately 25 million Steam players were online and six million were playing games.
But whether the new hardware can match Steam's success remains to be seen when the devices launch next year.
Analysts had previously questioned the significance of the Steam Machine at its launch. in its original, bulkier form ten years ago – saying that its price and potential might only really entice “power users” of Steam.
In a video announcement, Valve described the new console as “a powerful gaming PC in a small but powerful package.”
The firm claims the device is “optimized for gaming” compared to other PCs, as the firm can tell which games in its huge digital store will run on it before you buy it.
Valve said the new Steam Machine, powered by the Linux-based SteamOS operating system and AMD GPUs, 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 Steam Deck handheld console, which has a “lucrative but niche” audience of “about four to five million players.”
“Most of these people were already Steam customers and wanted to take their PC games with them,” he said.
“I believe Steam Machine will be similar – it will primarily appeal to a lucrative enthusiast audience of existing Steam players who want to play their games in their living rooms.”
Valve also announced new hardware, the Steam Frame virtual reality (VR) headset.
The device is completely wireless – and it's described as a streaming-focused device – but it's also a PC itself running SteamOS.
And he also claims to bring A technical leap forward in virtual reality, the headset displays the highest quality graphics only in the parts of the screen that the user is looking at.
With massive announcements of new devices, Valve hopes to compete with its more established competitors.
In recent years, Microsoft-owned Xbox has put its Game Pass subscription service at the center of its offering to gamers – some say to the detriment of its console crown.
Meanwhile, the PS5 was the best-selling console for a while, but fans were left wondering. when will its successor hit the market?.
Brandon Sutton, a gaming industry analyst at Midia Research, said the announcements showed Valve's “good understanding of where the gaming market is heading and what gamers want.”
“With Sony and Microsoft moving away from console exclusives and game streaming services taking over, now is the best time for a PC/console hybrid,” he told the BBC.
