the Shifting Console Landscape: valve’s Potential Entry and Microsoft’s Strategy
the success of Valve‘s Steam Deck handheld gaming device has demonstrably impacted the console market, prompting Microsoft to invest in portable gaming solutions like the ROG Ally (X), developed in partnership with ASUS. Now, valve appears poised to challenge the established dominance of Sony’s PlayStation and Microsoft’s Xbox with a potential foray into the traditional console space. A recent trademark application filed with the United States Patent and Trademark Office seeks to secure the rights to the name “Steam Frame.”
The trademark filing describes a device encompassing standard computer hardware coupled with software for playing audio, video, text, and multimedia content, including streaming services. It also highlights network connectivity and the inclusion of dedicated peripherals. this description aligns with the core functionality of a stationary gaming console.
Rumors surfaced late last year suggesting Valve was developing a console project codenamed “Fremont,” spurred by a patent for a novel gaming controller. The timing of the trademark application and controller patent suggests a logical progression: securing the brand identity following development, in preparation for a potential launch.
However, Valve’s previous attempt to enter the console market, the Steam Machine, serves as a cautionary tale. Launched in 2015, the Steam Machine was a series of compact gaming PCs designed to resemble consoles, accompanied by Valve’s proprietary Steam Controller. Valve did not handle manufacturing directly, instead partnering with companies like Gigabyte. Despite the innovative approach, the Steam Machine failed to gain meaningful traction and was discontinued after five years. The sole survivor from the project was SteamOS, a Linux-based operating system, which now powers the Steam Deck and is also licensed to other manufacturers, including Lenovo.
The appeal of a traditional console lies in its optimized gaming experience and ease of use – offering a plug-and-play experience with minimal configuration. Despite this, questions remain about the future of the console market. Some analysts predict a shift in Microsoft’s strategy, suggesting the next Xbox iteration might potentially be developed as a reference device, similar to the gaming handheld approach, in collaboration with a hardware partner. This potential move underscores a broader industry trend towards flexible, partner-driven hardware development.Whether Valve’s “Steam Frame” can succeed where the Steam machine faltered remains to be seen, but its entry would undoubtedly inject new competition into a market currently dominated by PlayStation and Xbox.
