Valve, the company behind the popular PC gaming platform Steam, has announced an exciting new console called the Steam Machine, designed to compete with established giants like Xbox and PlayStation. This innovative home console not only allows users to enjoy PC games on their TV but can also function as a powerful computer in its own right.

The Steam Machine is described as a spiritual successor to the original Steam Machine that was released in 2014 and ultimately struggled to gain traction in a market dominated by other consoles. While the original models started at $499 (£300), this new iteration promises to deliver significantly enhanced performance, potentially commanding a higher price point.

Set to launch in early 2026, specific pricing and release details are yet to be finalized, but Valve has stated that it will provide further information as the release date approaches. During the announcement, the company called the device 'a powerful gaming PC in a small but mighty package,' designed as a cube measuring merely six inches across. Powered by Linux-based SteamOS and equipped with AMD graphics processors, the Steam Machine is capable of 4k resolution and 60 frames per second.

Additionally, Valve has introduced a new controller for the Steam Machine, which features two large trackpads, allowing for a unique input method akin to a computer mouse.

In a surprising move, Valve also showcased its Steam Frame virtual reality headset, hailed as a 'streaming-first' device that runs on SteamOS and offers wireless functionality. This headset marks an advancement in VR technology, providing high-quality graphics only in the player's direct line of sight.

Industry analysts highlight Valve's strategic understanding of market trends, suggesting that with console exclusives fading away and the rise of game-streaming services, this is an ideal time for a PC-console hybrid. Observers liken the Steam Machine's appeal to that of Valve's handheld Steam Deck, catering primarily to a dedicated audience of existing Steam users who prefer playing their games in a more traditional living room setting.