Valve has announced the Steam Machine, a powerful living-room gaming device, alongside a revived Steam Controller with significant upgrades. The hardware aims to bridge console and PC gaming, targeting couch-friendly experiences without the complexity of traditional setups. Analysts predict strong potential if priced competitively around $400 including the controller.
Announcement Overview
On November 14, 2025, Valve revealed the new Steam Machine, described as six times more powerful than the Steam Deck, and a successor to the original Steam Controller discontinued in 2019. The announcements come amid rumors of a controller revival last year, positioning the hardware as an accessible entry into PC gaming for console users and a convenient option for existing Steam players.
Steam Machine Details
The Steam Machine features two SKUs: a 512GB edition and a 2TB version, with a suggested price point of $400 to $450 including the controller to compete with consoles like the PS5 ($499 digital) and Xbox Series X Digital ($599). Analyst Rhyss Elliott from Alinea Analytics notes, "A $400-$450 floor price is feasible. I could see Valve selling a couple million Steam Machines next year at a price point like that, if they stagger their supply well." It targets users seeking a dockable, TV-connected experience, with about 20% of Steam Deck owners already using it this way. The device runs Steam OS for seamless controller integration and can support other operating systems like Windows, enabling access to platforms such as Epic Games Store, GOG, and Xbox Game Pass.
New Steam Controller Features
The updated controller addresses the original's flaws, adding a second analog thumbstick, improved ergonomics inspired by the Steam Deck, enhanced gyro motion controls, and better haptics. It retains dual touchpads for mouse-like precision and customizable mapping via Steam software, making it suitable for diverse genres from space sims to 4X strategy games. While its quality remains untested until release, it promises a premium feel over the 2015 model's plasticky build.
Market Impact
Elliott highlights the Steam Machine's potential to challenge Xbox by offering console-like simplicity with PC openness, stating, "Valve just beat Xbox to the punch." It won't dominate PlayStation or Nintendo sales but could boost Steam's ecosystem by attracting younger consumers and console-curious players to PC gaming.