Valve is rumored to be developing a new Steam console to compete directly with PlayStation and Xbox.
According to a well-known insider eXtas1s, the company is working on a powerful gaming system, marking a significant shift from its past focus on handheld gaming.
The Spanish leaker posted on X saying, "VERY SPICY with VALVE, it already seems that a new STEAM console is coming to compete against PS5 and XBOX in the future."
According to the leak, Valve is working with AMD, particularly on the development of drivers for the AMD 9070 GPU, the first graphics card to use RDNA 4 architecture and FSR 4 image construction technology.
While this GPU is primarily developed for desktop PCs, Valve's involvement has fuelled speculation that it is developing a new console running SteamOS. This system could be a full-fledged competitor to the PlayStation 5 and Xbox Series X, bringing PC gaming further into the living room space.
Recent updates in the Steam Deck's kernel, where a valve employee was investigating HDMI CEC functionality— often used in game consoles for seamless TV integration, also support the rumor. Additionally, updates in SteamDB tracking have revealed branding guidelines for "Powered by SteamOS," which may indicate a new standalone gaming device.
Valve previously entered the console-like market with Steam Machines in 2015, but the idea failed to gain traction.
The concept revolved around miniature PCs running SteamOS, which provides a hybrid experience between PCs and consoles. However, issues with pricing, fragmentation, and lack of developer support led to its decline. Now, with the success of the Steam Deck, Valve appears to be taking another shot at home gaming hardware, possibly learning from past mistakes.
If these rumors prove to be correct, Valve’s new console could shake up the current duopoly of Sony and Microsoft, providing a unique alternative that merges the power of PC gaming with the accessibility of a console. However, without an official announcement, it remains to be seen if Valve will deliver a system capable of competing with industry titans.