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Valve unveils a new Steam Machine in 2025 to take on PS5 and Xbox Series

Young man playing a racing video game on a console with a TV and gaming devices on a wooden table.

Valve has just announced a new Steam Machine - a console/PC designed to go head-to-head with the PS5 and Xbox Series. It is an unexpected comeback for a line-up many assumed had been dead and buried for years. So why bring it back now?

Valve’s latest reveal: Steam Machine, Steam Controller and Steam Frame

For a surprise announcement, this really is one. Valve has unveiled three new products: a virtual reality headset, the Steam Frame, a controller called the Steam Controller, and a console known as the Steam Machine. Unsurprisingly, it is the Steam Machine that has captured most of the attention.

The new device comes in the form of a black cube, with two USB ports on the front, a customisable top panel, and an LED strip running the full length of the chassis. It is built to run Steam’s biggest releases: as Valve admits in its presentation video, this is a powerful gaming PC inside a compact case that can plug into your television or a PC monitor. In other words, it is a console.

The Steam Machine is a genuine surprise in 2025

Valve says the Steam Machine is six times more powerful than a Steam Deck. Inside, there is a custom AMD Zen 4 processor with a TDP of 30 watts, 16 GB of DDR5 RAM plus 8 GB of GDDR6 RAM. According to the presentation, it has what it takes to run all the major games in 4K at 60 frames per second, with ray tracing switched on, no less. Once again, it positions itself as a console and therefore aims to meet current market expectations.

Two versions will be available: one with 512 GB of storage and another with 2 TB. There is plenty of space on offer. One detail that matters: the system will run SteamOS, and games will benefit from certification, just as they do on Steam Deck. That means you will not have to get a headache tweaking settings the first time you launch games.

For now, Valve has not shared a price or a release date. It is a safe bet that Gabe Newell’s company will say more in the coming months.

Steam Machines didn’t start in 2025: what went wrong the first time?

Steam Machines are not a new idea. Steam launched the range back in 2015. The goal was the same: deliver a console-like experience on a television. But the concept quickly fizzled out, to the point it was effectively declared dead in 2018. So what has changed?

In truth, the original Steam Machines were essentially PCs running SteamOS (and very often Windows alongside it). They were licensed products made by different manufacturers, including Alienware, Zotac and Gigabyte. Hybrid, awkward and expensive, these devices failed to win over buyers, who preferred to stick with a “traditional” PC.

Steam Deck: the turning point behind the new Steam Machine

In 2021, Valve changed tack with the Steam Deck - the device that rebooted the company’s whole strategy. Valve clearly learned from past mistakes by selling hardware designed in-house: a more closed-off product with an OS that feels more “console”, and above all is simpler to use. Games are now certified and tuned for the hardware. Straightforward, effective and convenient.

That is exactly the approach Valve is bringing to the new Steam Machine. Whether it wins over the crowds will come down to one crucial factor: the price.

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