Valve, the company behind the popular PC gaming platform Steam, has revealed its latest product: the Steam Machine. This new gaming console aims to compete with established giants like Nintendo, Microsoft’s Xbox, and Sony’s PlayStation.

Designed as a home console, the Steam Machine can also function as a computer, allowing gamers to easily play their favorite PC games on a television. This device acts as a spiritual successor to the original Steam Machine from 2014, which struggled to find its footing in a market dominated by key players.

Previous models started with a price tag of $499 (£300), but the latest iteration promises enhanced performance and is expected to be priced higher. A release date is set for early 2026, though specific pricing details are yet to be announced.

In a video announcement, Valve described the Steam Machine as a “powerful gaming PC in a small but mighty package,” boasting a compact 6-inch cube design while remaining optimized for gaming. It is powered by the Linux-based SteamOS and equipped with advanced AMD graphics, supporting resolutions up to 4K and 60 frames per second.

Alongside the Steam Machine, Valve has also introduced its new Steam Frame virtual reality (VR) headset, which operates wirelessly and runs SteamOS. This cutting-edge VR device showcases high-quality graphics only in the areas of the screen that users are actively looking at, representing a notable advancement in the technology.

With these announcements, Valve aims to establish a stronghold in the gaming industry amidst shifting trends where Microsoft has focused on subscription services like Game Pass and the PS5 continues to perform well in the market. Industry experts suggest that Valve's understanding of gamer preferences could place it on a path to success, particularly targeting existing Steam customers who desire to play in a living room setting.