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 will provide more details closer to the release date. 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.

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 is described as a streaming-first device, but it is also itself a PC running SteamOS.

With the sweeping new device announcements, Valve is setting itself up to rival its more established competitors. Brandon Sutton, a games industry analyst, noted that Valve's announcements showed a strong grasp of the gaming market trends. Industry expert Christopher Dring indicated that the Steam Machine is likely to appeal to a similarly enthusiastic audience found in the handheld Steam Deck market.