Valve Challenges Xbox and PlayStation with New Steam Machine and VR Headset
SEATTLE, WA – Valve is entering the console market with a new Steam Machine, a compact gaming PC, and a wireless virtual reality (VR) headset, the steam frame, directly challenging established competitors Microsoft Xbox and Sony PlayStation. Pricing for both devices remains unannounced.
The Steam Machine is described as “a powerful gaming PC in a small but mighty package,” fitting within a 6-inch cube. Valve emphasizes its optimization for gaming by guaranteeing compatibility with games available on its Steam digital storefront before purchase. The device runs on a Linux-based SteamOS operating system and utilizes AMD graphics processors, supporting 4k resolution at 60 frames per second.
Alongside the Steam Machine, Valve unveiled the Steam Frame VR headset, a “streaming-first” device that is also a fully functional PC running SteamOS. The headset employs a new technology displaying high-quality graphics only in the user’s direct field of vision.
The announcements position Valve to compete with Microsoft’s focus on its Game Pass subscription service and the continued success of the PlayStation 5, with fans anticipating the release of its successor.
“With Sony and Microsoft moving away from console exclusives, and the prevalence of games streaming services, it has never been a better time for a PC-Console hybrid,” said Brandon Sutton, games industry analyst at Midia research.
Industry expert christopher Dring compared the Steam Machine’s potential to the Steam Deck, noting its appeal to a “lucrative but niche” audience of existing Steam customers – estimated at “around four to five million players” – seeking a living room gaming experience.
Valve launched the Steam platform in 2003, which has since become the world’s largest PC gaming distribution platform, boasting approximately 25 million concurrent players and six million actively playing games as of the time of writing.
