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Valve dropped three absolute bombs today. The Steam Frame standalone VR

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headset. That's going to have to be a separate video. But this one focusing on

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the new Steam Machine and yes, the wait

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is finally over, the 2026 edition Steam

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Controller. Let's start with a little history. Over 10 years ago, Valve

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announced their first version of Steam OS, a Linux- based operating system that

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would free gamers from the shackles of Microsoft Windows. No, it was a total

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commercial flop. But instead of giving

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up on Steam machines, Valve doubled down, working with game developers on

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Linux native ports of their games and with open- source developers on the

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Proton compatibility layer that makes their Steam Deck handheld out of the box

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compatible with thousands of Steam games, even ones that only ever shipped

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on Windows. The Steam Deck is believed to have sold millions of units at this

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point. And no wonder given its great balance of solid gaming and outstanding

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affordability. But its mobile form factor has given it certain limitations

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and left gamers hungry for something more substantial. And well, here it is.

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I'm calling it the lunchbox. One, because it's substantial, like lunch.

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Two, because it's cube- shaped like a box. And three, because I think this

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thing is going to eat Xbox's lunch.

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Okay, that last one was a bit of a reach, but not as far as I'm reaching

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for this segue to our sponsor.

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>> Hold up. [music]

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[singing] They're easy to move and they're easy to

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use and super comfy. But I got a little

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friend know now. A guy has got [singing and music] to cate somehow.

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In what has become typical Valve fashion, they've been atypically open

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about the new Steam Machine, giving us direct access to the engineering folks

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who worked on these devices. The only thing I didn't have today was time, so

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we're going to get through this as fast as we can. At the heart of the Steam Machine is a six core AMD Zen 4-based

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CPU that turbos up to 4.8 8 GHz with 16 gigs of RAM and an 8 gig GPU that they

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compared to a 7600 XTish, but they were

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also quick to point out that it might not be apples to apples thanks to their

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custom software stack and power tuning. Basically, the goal was that pretty much

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anything on Steam should run at 4K 60fps

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if you're willing to turn down the details and use a little bit of FSR

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upscaling. And we saw that on display with Cyberpunk running in the demo room

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at these settings. Valve says to expect about six times the performance of the

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Steam Deck. Now, I was a little surprised to not see an SoC with shared

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memory, but apparently the decision to go for discrete CPU and GPU came down to

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balancing cost, power, size, and performance. And also, they just didn't

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feel like they needed to. And I guess

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Valve was right because they nailed this thing. Compared to a more traditional

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ITX small form factor machine like the OG Steam machine reference design, you

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can see that it's a lot smaller, more on

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par with a highly integrated design like something like the Framework Desktop.

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Investment disclosure. Like the Framework Desktop, Valve allows

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customization of the front panel using these magnetic plates. And they're going

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to provide the CAD files so you can put whatever your heart desires on here.

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They even had a machine in the demo room with an e- in display that was showing

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system vitals. Pretty darn cool. But unlike the framework, it has a

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programmable RGB strip in the front that could be used to personalize your style

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or maybe show a progress bar while you switch your TV input and wait for your

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game to be downloaded. The sky's is kind of the limit. The front of the device

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has a power button, micro SD slot, two USB 3 5 Gbit per second ports. Then the

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rest of the IO is in the back where you'll find two USB 2 type A ports, a

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USBC 10 Gbit per second port, no display

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port on there. That is worth noting. gigabit Ethernet, power in for the

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integrated power supply. Good gravy, this thing is compact. As well as an

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HDMI 2.0 and DisplayPort 1.4 port. It

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is worth noting that HDMI 2.0 port, they have tested it at HDMI 2.1 speeds, but

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there are a couple of features that are not implemented, so they can't call it HDMI 2.1. Also at the back, we have a

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large 120 mm cooling fan that draws air

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from both the intake on the bottom that comes up through the power supply as

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well as the large heat sink on the front. We're going to crack this thing

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fully open in a sec, but first I want to talk about the steam controller. No, no,

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not that steam controller. The new one with the exact same name. Before you

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ask, yes, I made my case to Valve that this is unnecessarily confusing. No,

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they're not going to change it. The good news is Valve learned a lot from the

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first Steam Controller, and this appears to be their most complete offering ever.

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To be fair, the original was really cool. I mean, it made non-controller

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games finally playable from the couch thanks to their innovative haptic

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touchpad. They also unlocked novel input schemes with gesture control or like

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swiping with momentum. But they also turned off a lot of folks due to their

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uh [clears throat and snorts] deficiency of traditional joysticks.

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Well, that's solved. Now, the Steam controller is everything that is great

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about the controller on the Steam Deck, but usable when your Steam Deck is in

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docked mode or with your Steam machine or with any other PC. Investment

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disclosure. On the surface, it offers up a conventional ABXY button layout with a

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PlayStation style symmetric joystick design that will work seamlessly out of

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the box with basically any game. The trackpads have been repositioned to

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better accommodate the arm's natural position while holding a smaller device

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compared to the wider Steam Deck. And all of the usual Valve buttons are

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included. A Steam button for opening the menu, their quick access button for

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bringing up the Steam OS overlay, four rear programmable buttons. The face

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buttons are satisfying with a nice amount of resistance, and the D-pad has

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been tuned from the Steam Deck for better feel. It feels okay to me, but I

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only got a couple minutes with it before Valve blew my [music] mind. The

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joysticks are next generation TMR or tunneling magnetoresistant joysticks

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boasting superior accuracy and durability even compared to Hall effect

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joysticks. And the controller has been designed from the ground up for a

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superior gyroscopic aiming or mousing experience with capacitive thumb sticks

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and even capacitive grips. So you can configure your gyro to enable or disable

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depending on whether you put your thumb on the stick or even by simply loosening

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your grip, say to recenter and then reactivate gyroscopic aiming. They had a

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great demo with Bellatro showing how you can use the game's built-in controller

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compatibility like a pleb. Or hear me

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out, trackpads with the right for movement and the left one split down the

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middle for left and right click. or hear me out again, gyro mouse using the face

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buttons for clicks. And if you don't care about gyro aiming, these capacitive

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inputs are all remappable as well, opening up a whole world of

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possibilities. Let's go even deeper. In addition to the

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haptic texture-like feedback that you know and love from Valve's previous

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touchpads, the Steam Controller has been upgraded with large rumble motors for

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better immersion and a large battery that they claim should be good for 35

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hours in the most demanding applications and even better if you don't need quite

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as much rumble. But I haven't even talked about the best part. If you've

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ever gamed over Bluetooth, you know that it can be inconsistent at best. Valve

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solution, the puck. Every Steam controller comes with a wireless dongle

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that clips magnetically to the Steam Controller using a couple of nice strong

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alignment magnets. And it uses a proprietary 2.4 GHz wireless interface

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that Valve claims is good for about 8 milliseconds endto-end latency and

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offers up superior resiliency when you're using multiple controllers. It

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allows four controllers per puck. Though that's not as good as the Xbox dongle,

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which can do eight, but Valve has tested up to four pucks on a single system for

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a maximum of 16 players, meaning that you're probably going to run out of

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seats on your couch before you run out of controller compatibility. The last

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chef kiss on top is an IR emitter that's

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cozied up beside the power LED to help you find your controller when you're in

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VR. I love it. Now, let's get back to the steam machine who uh got naked while

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we were busy. [laughter] Oh, you. While

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Valve's goal was to build something that is zero hassle, grabbing game for the

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non-tinkerers, they really were laser focused on a console-like experience

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with quick suspend and resume and modern standby so that your games are already

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updated when you sit down to play. They also fully acknowledge that there are

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folks out there, guilty, who are tinkerers, and they've come up with an

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ingenious design for this thing that allows it to cater to both audiences. in

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advance. No, you're not going to be swapping out the BGA soldered

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processors, but what you can do is

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upgrade the storage with next to no hassle to a 2230 or larger 2280 sized

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M.2 drive. And while we couldn't go that deep today, Valve also confirmed that

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the memory uses standard sodium slots.

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Finally, while Valve hasn't actually told iFixit that this product is coming

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yet, they did say that they're hoping to continue their partnership that they've

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had on the Steam Deck making replacement parts available for end users. Awesome.

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Since we're in here, by the way, there are some really cool details that I'd love to highlight. The power supply, for

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one thing, is fully integrated to the point where it's actually part of the

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chassis and the cooling solution pulls air directly through it, which avoids

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any need for it to have its own fan. The aforementioned Delta cooling fan is

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actually slightly thicker than the standard 25mm for extrastatic pressure

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and it includes antenna mounts that are integrated into it along with IO mounts.

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Cool, right? Oh, this is actually a great look at the four antennas. So,

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this is the back of the device where you have your two antennas for Wi-Fi 6E.

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Then, if we flip it around to the front, we've got one antenna for Bluetooth peripherals and another one that is

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dedicated to your Steam controller or controllers. So that puck that's

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included with your controller is actually extra and you could chuck it on

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another PC or next to your couch for charging. A major question mark though

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is of course price. Valve wasn't able to give any specific numbers due to

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[clears throat] rapidly evolving market conditions. But they will obviously have

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it nailed down when the Steam Machine launches in Q1 2026 alongside the new

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Steam Controller. They did give me one hint though. They said that while they

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expect it to be very competitively priced with a PC, that it will be priced

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like a PC rather than like a console with games subsidizing the upfront

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hardware purchase. They wouldn't say why, but if I had to guess, I'd say it's

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partially to avoid stepping on the margin opportunities of their potential

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partners for Steam games and Steam software, but also because they

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recognize that the Steam machine is a full-fledged PC capable of being used as

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a full-fledged PC. There's no guarantee then that uh say a corporate purchase of

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10,000 of these things would result in a single game sale. So they really do need

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to protect the sustainability of their hardware business. Another major

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question mark is where the heck is standalone Steam OS for custom PC

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builders? Well, we aren't going to get a formal

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Steam OS release for BYO hardware configurations anytime soon, but Valve

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has expanded the list of supported thirdparty devices, and they have

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supported installing the Steam Deck recovery image on AMD CPU and GPU

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systems for some time and recently updated it to support their latest Zen 5

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and RDNA4 architecture processors. So,

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nothing prevents you from building your own Steam Machine and installing the

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software for free. though you will miss out on some things. HDMI CEC control for

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instance um required Valve to build a custom motherboard in order to have your

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you know computer turn on alongside your AV receiver and to get that on a BYO PC

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would require some serious cooperation between hardware makers that uh I

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[snorts] don't know if we should hold our breath for but the bulk of the

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experience should work pretty much out of the box. We may even get a release

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that supports a broader range of hardware in the future. But the vibe I'm

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picking up on around here is that it really depends on better support for

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Intel and especially NVIDIA GPUs. I'm

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also picking up this vibe to our sponsor.

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>> What up? >> Hey man, I got a new couch and I think I

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need some help. >> Bro, you know I got some stuff to do

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today. >> Come on. It won't take long. >> Okay. He doesn't know it's

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[singing and music] an M1 sofa from Ro.

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Moved it and set it up by [singing] myself. Now [music] I'm watching gra.

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I really don't [singing] want to lift a couch right now, but he's

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been there [music] for me. And I'm going to find a way to help him somehow.

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Man, you made it, but it's already slow. Man,

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you're the greatest. [music] How did you lift it by yourself? It's made of strong

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yet comfortable foam. [music] And it's easy to move anywhere in your

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home. And [singing] so why did you need my help? >> I want you to help [music] me celebrate

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because there's a Black Friday sale and everything [music] 60% off.

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Brother,

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I tried to get through everything, but I only had about 4 hours to get briefed on

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everything right and film. So, my apologies. Now, assuming that that one's

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up yet, go check out the video on the Steam Frame VR headset because it's a

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game changer. It's a big deal. Please make it clear

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that this is not a real product.
