In typical Valve fashion, the Steam owner has today announced a new lineup of gaming hardware coming in 2026 - including the Steam Machine which sounds a lot like it'll compete with the likes of Microsoft and Xbox.

As detailed in the video up above, this new Steam Machine is basically a home console version of its Steam Deck concept; merging PC and console in the shape of a living room box. It arrives alongside Valve's new controller (with a separate VR headset also coming), which just like Steam Deck contains typical controller buttons alongside its mouse-like trackpads.

The form factor of the system is almost like an Xbox Series X chopped in half, with Valve opting for a fairly minimalist look here. The specs are fairly modest too, with the Steam owner likely leaning on its optimised Linux-based OS to get modern games running well - again, much like Steam Deck. It'll be more powerful than the company's handheld device, but seemingly more current-gen aligned than the likes of Microsoft's premium next-gen Xbox.

Where the device will of course compete with the next-gen Xbox is in its PC-like nature. Valve's 'console' is built around Steam - but it is in effect a PC, and with the right tinkering it'll be able to access the breadth of gaming content available on various PC storefronts. We'll have to see how that performs in practice, and how the next-gen Xbox shakes out too - but we're certainly going to keep an eye on both approaches as they roll out in the coming years.

"The Steam Hardware family officially expands in early 2026. Just like Steam Deck, all are optimized for gaming on Steam, and all are designed to help players get even more out of their Steam Library."

"With over six times the horsepower of Steam Deck, Steam Machine has the power to play your whole Steam library, including your favorite AAA titles. Just sign in with your Steam account and your entire library is there."

For now, you can take a look at Valve's full Steam Machine spec sheet via a new blog post, and we'll link to some in-depth coverage from our friends at Digital Foundry down below.

What do you reckon to this, PXers? Chat with us about the new Steam Machine down in the comments.