Valve’s Steam Machine Is Beating Xbox at Its Own Game

Imagine a compact box, and inside is a bunch of PC parts: a CPU, RAM, SSD, and a cleverly engineered thermal device to keep everything cool under pressure. This box is meant to run demanding games at a fair clip. It is designed to allow developers to build games around the system without any difficulties in working with non-standardized hardware. Right now, I’m describing Valve’s newly revealed Steam Machine. Five years ago, I was describing an Xbox. But not so much now.

After years of efforts to make Steam Machines viable, Valve understands the benefits of consoles in today’s gaming landscape. The Steam Machine is suitable for those who cannot afford a high-end PC but still want to play their PC game library while relaxing on the couch. Valve promises that it will take the best of Steam Deck and bring it to consoles. This includes everything from Linux-based SteamOS with easy game navigation to handheld sleep and wake functions that let you jump back into your game without needing to fight against Windows.

It appears that Microsoft intends to bring PC and Xbox closer together. If you’ve tried navigating Windows lately — between all the popups, focusing on CoPilot AI, and pesky bugs hindering PC gaming — migrating to SteamOS seems like an attractive proposition. It’s not like you’ll be completely blocked from accessing your entire game library. An active developer scene has enabled players to play their Epic Games library through the SteamOS interface. You can run emulation very easily on Linux-based systems too. The only thing missing is Xbox Game Pass.

New hardware isn’t as important as a rock-solid OS

steam machine
© Valve

Valve’s roughly 6 x 6-inch console is roughly half the size of the Xbox Series While the Xbox Series It’s still not the cutting edge of AMD’s latest graphics architecture. The Steam Machine will not run AMD’s FidelityFX Super Resolution 4 technology, which is hardware dependent on the RDNA 4 found in its most recent Radeon RX 90-series GPUs.

What’s more important than the latest chip architecture is whether Valve’s console can feel seamless. Console gamers don’t want to mess with graphics settings. They don’t want to adjust controls and download new controller profiles. They just want to turn on their console and get straight into gaming. Valve has promised to introduce Steam Machine Verified badges for supported games, along with another badge for its new Steam Frame VR headset. We just need to see how Valve calculates why the game is suitable for the Steam Machine. If it can enforce a minimum of 60 FPS at 4K resolution, most gamers will be satisfied. At least, Valve says that if a game is already Steam Deck verified, it will automatically be verified for the Steam Machine.

PC gaming has long been hardware agnostic. PC developers today need to ensure that their games work with a variety of component vendors to eliminate any incompatibilities or bugs. With Steam Machine, developers can focus their attention on making their games run well on a specific platform, as long as it feels worth the trouble. Valve may have enough clout in the game industry to secure those partnerships. Developers like Owlcat, creator of Warhammer 40,000: Rogue Traderand Larian Studios baldur’s gate 3 Famously, a recently launched patch made their RPGs run better on Valve’s handheld. Meanwhile, even with the Asus ROG Xbox Ally badge, you’ll need to go into the graphics settings to make sure each game is running properly.

just need the price

steam machine 5
© Valve

There is still the question of price. Valve says the Steam Machine, along with its Steam Frame VR headset and new Steam Controller, will arrive in early 2026. The highest cost Steam Deck OLED with a 1TB SSD is $650. The Steam Machine promises six times the performance of the Steam Deck, shouldn’t it also cost more? It depends on how much Valve plans to subsidize its hardware.

Steam is such a dominant force in PC gaming that a recent survey of industry executives found that most Valve has a game platform monopoly. The entire reason Valve’s hardware exists is to prevent players from purchasing games on Steam, giving Valve a 30% cut of the purchase.

What matters more than the price of a steam machine is the ease of access. There’s a reason the Switch 2 sold so well this year. Nintendo’s handheld promises exclusive games and a seamless experience. Valve, which owns the most dominant gaming platform on PC, has the opportunity to move large numbers of its players away from their desks to the couch. At that point, Windows will have difficulty making room for any new devices on players’ TV stands.





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