Valve’s Next Hardware Launch Could Be Its Biggest Since The Steam Deck

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Valve’s new Steam Controller, launched on 4 May for USD99, sold out quickly across multiple regions. Reservation queues opened shortly after as demand outpaced initial supply.

The controller is part of a much larger hardware expansion from Valve, which is preparing to launch the Steam Machine and Steam Frame in 2026.

The Steam Machine is the more significant release.

Valve says the system will support 4K gaming at 60fps and deliver roughly six times the performance of the current Steam Deck. It will ship in 512GB and 2TB configurations and run SteamOS, Valve’s Linux-based gaming operating system.

Unlike the Steam Deck, the Steam Machine is targeting living room gaming directly. It is effectively a compact gaming PC designed to compete more closely with consoles while still giving users access to their Steam libraries.

That creates an immediate pricing problem.

Valve has not announced pricing yet, but discussion around the hardware has already focused heavily on whether the company can position the Steam Machine competitively against consoles like Sony’s PlayStation 5 Pro.

YouTube creator Linus Sebastian recently said during a WAN Show episode that he suggested a console-style USD500 price point to Valve, arguing that the hardware would become much harder to justify above that range. According to Sebastian, the reaction from Valve representatives suggested the company may not be targeting console-level pricing.

It’s not very surprising, considering consoles are often subsidised heavily because platform owners recover revenue later through subscriptions, accessories and software sales. Gaming PCs operate differently, particularly when buyers are directly comparing specifications across devices.

Valve also has to position the Steam Machine carefully against the Steam Deck itself. One of the handheld’s biggest advantages is relatively straightforward value: users get access to their PC game libraries in a portable form factor without needing a full desktop setup.

A living room gaming PC occupies a more crowded category.

Sony, Microsoft and Nintendo already dominate traditional console gaming, while compact gaming PCs have existed for years without breaking into the mainstream in a major way.

Valve has attempted something similar before.

The original Steam Machines launched in 2015 through partnerships with third-party manufacturers, but the devices struggled with inconsistent hardware, unclear branding and software limitations tied to early versions of SteamOS.

The newer strategy looks more cohesive.

Valve now controls SteamOS internally across the Steam Deck, Steam Machine and Steam Frame headset. The company also has significantly more credibility in hardware after the success of the Steam Deck, which helped establish SteamOS as a viable gaming platform outside Windows.

The Steam Frame is another part of that broader strategy.

Valve has confirmed the headset will launch around the same period as the Steam Machine and will also run SteamOS. VR remains a much smaller category than handheld or console gaming, but Valve has continued investing in the space since the release of the Valve Index.

The Steam ecosystem is increasingly starting to look interconnected, as does the Steam Controller. The controller now includes dual trackpads, gyro controls and magnetic thumbsticks designed for PC-style precision across SteamOS devices.

It also includes a less practical feature that quickly spread online after launch: the controller emits the Wilhelm scream when dropped repeatedly while running in Steam Big Picture Mode.

The feature appears to use the controller’s haptic system and includes a cooldown timer between activations.

Valve has not commented on whether the scream serves any purpose beyond amusing whoever implemented it.

At this point, though, the controller itself is probably less important than what it represents.

The Steam Deck proved Valve could build successful gaming hardware. The Steam Machine will test whether the company can extend that success into a broader living room ecosystem built around SteamOS.