Valve has recently unveiled an exciting lineup of new hardware products, sparking considerable enthusiasm among gamers. While the refreshed Steam Controller and the updated virtual reality headset, dubbed the Steam Frame, have garnered attention, the most significant buzz centers on the new generation of Steam Machines. These devices are designed to be as comfortable under a TV as they would be beneath a monitor, representing Valve’s renewed effort to bring PC gaming into the living room. Although marketed as micro PCs rather than consoles, the distinction is increasingly blurred, and many see these new Steam Machines as effectively functioning like consoles.
Valve’s new Steam Machines mark the company’s second attempt at creating dedicated hardware to bridge PC gaming and the traditional console experience. The first generation debuted in November 2015 but struggled to gain traction and ultimately failed to capture a substantial market share. However, the gaming landscape in 2025 is vastly different. The success of the Steam Deck—a portable handheld gaming PC created by Valve—has revitalized interest in PC-based gaming devices, inspiring a wave of similar gaming handhelds, even prompting Xbox to enter the handheld market. Moreover, PC gaming overall is in a much stronger position, enjoying wider adoption and greater mainstream appeal.
In the announcement video for the new Steam Machines, Valve was careful to emphasize that the device remains a PC and not a console. This insistence is understandable given that Valve is primarily a PC game developer and retailer; they are offering a PC designed to play their games. Yet, when you look closely at the hardware and its intended use, the new Steam Machine resembles a console in many important ways—and that should be seen as a positive development.
Traditionally, a games console is a device manufactured by a single company, featuring a uniform hardware design, and intended to play games developed specifically for that machine, most often on a large television screen. Consoles offer fixed specifications, which benefits developers by providing a consistent platform for optimization, and assures buyers that any game they purchase will run as intended without compatibility issues. Console generations typically last about five years before a new model replaces the old one.
On the other hand, a PC is usually a customizable, desk-bound rig made from parts chosen by the user. When more power is needed, users can upgrade components such as the graphics card, RAM, or CPU without replacing the entire machine. PC gamers also enjoy the freedom to purchase games from a variety of digital storefronts, allowing them to hunt for the best prices. However, this flexibility comes with downsides: lack of fixed specs can cause crashes or bugs if components don’t play well together, and upgrading components can be expensive.
In recent years, the line between consoles and PCs has been steadily blurring. Physical game sales on PC have become almost obsolete, while console players increasingly purchase their games digitally through platform-specific stores. Industry analyst Mat Piscatella highlighted that in the US, physical game sales have halved since 2021 and are now more than 85 percent below their 2008 peak. Most PlayStation, Xbox, and Switch users buy games digitally, aligning their purchasing habits with those of PC gamers. While consoles maintain walled ecosystems, features like cross-buy and cross-play help soften the boundaries between platforms. For instance, many players seamlessly switch between devices like the Switch 2 and PC for games such as Hades II.
Despite the openness of the PC ecosystem, Steam dominates the PC game distribution market, commanding around 75 percent market share. A survey by GamesIndustry.biz found that 72 percent of developers view Steam as having an effective monopoly. This dominance keeps most PC gamers loyal to Steam, much like console players remain tied to their platform’s store, thanks to the convenience of having a vast game library in one place.
Hardware-wise, the modularity that once uniquely defined PCs is no longer exclusive. Consoles like the PlayStation 5 now come in multiple form factors, offering options for storage size and performance levels, such as the base digital Slim PS5 versus the high-end PS5 Pro. Users can upgrade storage or add features like a disc drive after purchase. While these options don't match a PC’s component-level customization, they showcase an increasing consumer familiarity with hardware tweaking within console ecosystems.
Turning back to the new Steam Machine, Valve has announced it as a compact device capable of delivering 4K gaming at 60 frames per second with FidelityFX Super Resolution (FSR), an upscaling technology. It features a discrete semi-custom AMD desktop-class CPU and