Gaming Updates: Analysis: Valve’s new Steam Hardware projects are a potential challenge to Microsoft and Meta

Source:

https://www.geekwire.com/2025/analysis-valves-new-steam-hardware-projects-are-a-potential-challenge-to-microsoft-and-meta/

ChatGPT:

Valve is expanding its hardware lineup following the strong success of the Steam Deck, and its newly announced products—the Steam Machine, Steam Controller, and Steam Frame VR headset—could shake up multiple corners of the gaming industry. Expected in 2026, the new Steam Machine targets living-room gaming and is claimed to be six times more powerful than the Steam Deck. Meanwhile, the Steam Controller offers a high-durability gamepad, and the Steam Frame aims to compete directly with Meta’s VR devices. Pricing details are still unknown, but will be crucial, as affordability was a major driver behind the Steam Deck’s popularity.

Because Steam controls 50–75% of global PC gaming, Valve can afford aggressive pricing, and a low-cost Steam Machine could appeal to younger players and the growing Asian PC market. If priced like the Deck, the lineup could become disruptive—especially for Microsoft and Meta. Microsoft’s next Xbox, rumored for 2027, is expected to resemble a Windows-based mini PC, making Valve’s Linux-powered Steam Machine an appealing escape for users wary of Windows 11 and Copilot integration. The Machine’s plug-and-play Linux desktop mode also strengthens its positioning as an accessible, non-Windows PC alternative.

In VR, the Steam Frame is clearly positioned against Meta Quest, which dominates largely due to its strong performance and low costs. Many VR users dislike Meta’s ecosystem, so a standalone Valve option could gain traction.

Still, the article argues that Valve likely isn’t pursuing an intentional disruption strategy. Historically, its hardware projects—including the Steam Deck—were created out of internal curiosity rather than competitive ambitions. With no shareholders and a culture of experimentation, Valve may simply be releasing long-incubated ideas rather than plotting a direct challenge to industry giants.