Valve, the company behind PC gaming platform Steam, has revealed a new console to rival Nintendo, Xbox and PlayStation.

The Steam Machine is a home console designed to allow gamers to play PC games on their TV – though it can also be used as a computer.

It is a spiritual sequel to the 2014 device of the same name, which failed to break into a market dominated by the three big gaming giants.

Prices for those consoles, back then, started at $499 (£300) – but Valve’s latest iteration is expected to cost a good deal more as it packs a far greater punch.

The Steam Machine will go on sale in early 2026, the company said, with the pricing yet to be announced.

The company says this and more details will be provided closer to the exact release date, which is also currently unknown.

In a video announcement, it described the device as “a powerful gaming PC in a small but mighty package” – with a decent amount of power inside a 6-inch cube.

Valve argues the device is “optimised for gaming” over other PCs because the firm is able to say which games on its massive digital storefront will work on it before you buy.

Powered by its Linux-based SteamOS operating system and AMD graphics processors, the firm said the new Steam Machine can support 4k resolution and 60 frames per second.

In an unusual move, Valve has also announced further hardware – its Steam Frame virtual reality (VR) headset.

The device is entirely wireless – and it described it as a “streaming-first” device – but it is also itself a PC running SteamOS.

And it brings a technical leap forward in the VR space – the headset displays the highest-quality graphics only in the bits of the screen you’re looking at.

With the sweeping new device announcements, Valve is setting itself up to rival its more established competitors.

In recent years, Microsoft-owned Xbox has placed its subscription service Game Pass at the heart of its offering for gamers – some say at the expense of its console crown.

Meanwhile the PS5 has been the best-selling console for some time, but fans have been left asking when its successor will appear on the market.

Since Valve launched Steam in 2003, it has grown to become the world’s largest distribution platform for PC gaming.

Around 25 million Steam players were online and 6 million were playing games at the time of writing, according to the platform’s own metrics.