Valve made three big hardware announcements today: they’re not only releasing a new Steam Machine, but also a new Steam Controller, plus what they’re calling the Steam Frame, a VR headset that can stream games from a PC, or be played directly from the headset. It can run any VR or non-VR game from your Steam library. It runs Steam OS and comes with its own split gamepad controller.

The Steam Controller is exactly what it sounds like: Valve’s new controller designed to work seamlessly with all its other devices like Steam Deck, Steam Machine, Steam Frame, laptops, and desktop PCs. It will feature magnetic analog sticks, HD rumble, gyro controls, trackpads, haptic feedback, and four extra customizable buttons on the grip.

Then the big one: the new Steam Machine. Valve is claiming it’s six times more powerful than the Steam Deck in raw horsepower, and that it’s still a PC, but a streamlined one that’s designed for easy use, but still provides the customizability that PC gamers are used to. It’s got a semi-custom AMD CPU and GPU that can run games up to 4K/60 FPS with a 512 GB and 2 TB storage options, and a built-in power supply. It absolutely looks like a console, a GameCube actually, and Valve is claiming it runs cool and quiet. Steam OS will be the operating system and it comes with a built-in wireless adapter specially made for the Steam Controller.

Given the way the winds are blowing in the industry right now, this was likely inevitable, with Microsoft slowly withdrawing itself from the mass-market console space and Valve testing the waters with the Steam Deck the last few years, and now a full-fledged Steam console. We’re not going to know how serious Valve is about competing against Microsoft, Nintendo, and Sony until they announce prices for all this new hardware, but if Valve is serious, Nintendo and Sony better realize that Valve is not Microsoft. They understand game design on a level that Microsoft never has, and now they’re experimenting and teaching themselves console and handheld hardware design as well. Plus, they have tons of cash. As Microsoft transitions to a software-only third-party publisher, Valve looks ready, willing, and capable of filling that third space.

The Steam Machine, Steam Controller, and Steam Frame will all release in early 2026. Check out the announcement trailer below: