Valve Announces New Hardware, Including A Steam Machine That’ll Compete With Xbox

In typical Valve fashion, the Steam owner has today announced a new lineup of gaming hardware coming in 2026 – including the Steam Machine which sounds a lot like it’ll compete with the likes of Microsoft and Xbox.

As detailed in the video up above, this new Steam Machine is basically a home console version of its Steam Deck concept; merging PC and console in the shape of a living room box. It arrives alongside Valve’s new controller (with a separate VR headset also coming), which just like Steam Deck contains typical controller buttons alongside its mouse-like trackpads.

The form factor of the system is almost like an Xbox Series X chopped in half, with Valve opting for a fairly minimalist look here. The specs are fairly modest too, with the Steam owner likely leaning on its optimised Linux-based OS to get modern games running well – again, much like Steam Deck. It’ll be more powerful than the company’s handheld device, but seemingly more current-gen aligned than the likes of Microsoft’s premium next-gen Xbox.