Valve, the company behind the PC gaming platform Steam, has unveiled its new console, the Steam Machine, designed to compete with well-established brands like Nintendo, Xbox, and PlayStation. This latest iteration allows users to play PC games on their television while also functioning as a computer.

In contrast to the original Steam Machine released in 2014, which struggled to penetrate the market, this version promises much higher performance and specifications. The previous model had a starting price of $499 (£300), and the current version is anticipated to be priced substantially higher, reflecting its advanced capabilities.

The Steam Machine is scheduled for release in early 2026, although specific pricing details will be disclosed closer to the launch date. The company has emphasized that the device is optimized for gaming, providing assurance about which titles will run smoothly on the system.

Equipped with a Linux-based SteamOS and AMD graphics processors, the new machine aims to deliver 4K resolution at 60 frames per second, positioning it as a serious contender in the gaming console market.

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In addition to the Steam Machine, Valve also introduced the Steam Frame virtual reality headset, a wireless streaming-first device that promises significant advancements in VR technology, including rendering high-quality graphics only in the user's focus area.

With these announcements, Valve aims to compete more effectively against rivals such as Microsoft's Xbox, which has leaned heavily into subscription services like Game Pass, and Sony's PlayStation 5, which has dominated sales. Industry analysts predict that the Steam Machine will appeal to a niche yet lucrative market of existing Steam users eager to enjoy their games in a living room setting.

The gaming landscape is evolving, and with Valve's strategic entries into both console and VR markets, it is poised to capitalize on the shifting trends in gaming experiences.