In 'Zoran's Update', experienced games manager Zoran Roso comments on current industry topics on LinkedIn, speaking from the heart for many in the industry. GamesMarkt is now republishing the update with Zoran's consent. This time's topic: Steam Machine.
Valve is making a determined return to the dedicated living room console space, having recently unveiled a new Steam Machine (set for a 2026 release) that is explicitly not the unsuccessful lineup from 2015. This new system is positioned as a powerful, console-like mini-PC built to bridge the gap between desktop performance and the couch experience.
A comparison of official specifications reveals the Steam Machine’s strategic positioning:
The Steam Machine utilizes the much newer AMD Zen 4 architecture, giving it a significant generational leap in CPU efficiency and single-threaded performance over the current and mid-gen consoles (PS5, PS5 Pro, Xbox Series X), which use the older Zen 2 architecture.
In terms of raw GPU compute power (Teraflops), the Steam Machine sits behind the competition with 8.8 Teraflops. This is substantially lower than the Xbox Series X (12.1 TFLOPS) and the anticipated PlayStation 5 Pro (16.7 TFLOPS).
This performance gap, combined with the subject of debate that is the 8GB GDDR6 VRAM allocation, confirms the Steam Machine's reliance on AMD FSR (upscaling) is not just a feature, but a necessity to achieve 4K/60fps on modern AAA titles.
Unlike the Steam Deck, which was strategically subsidized to serve as an entry point for PC gaming mobility, the new Steam Machine is anticipated to target a higher price bracket, likely in the $700–$900 range (similar to the rumored €729 PS5 Pro price). This positioning defines its core audience:
Valve must tread carefully on pricing, as market data suggests consumer expectations are low. A recent Gamestar survey of over 4,500 gamers revealed a clear friction point: 39% of respondents were only willing to pay between €400 and €600, while a mere 25% were willing to pay €600 or more (with only 5% accepting a price over €800). This indicates that the anticipated $700–$900 range will be a significant barrier to entry for the majority of the console-curious market. Valve’s likely strategy here is to prioritize hardware profit and platform consistency over mass-market price wars, acknowledging that pricing it too low risks it being bought merely as an inexpensive PC (an issue that forced Sony to take massive losses on the PS3 early on).
The original Steam Machine initiative a decade ago failed for three primary reasons: fractured hardware specs, high prices, and the immaturity of the Linux gaming ecosystem. Today, the landscape is fundamentally different:
This is no longer an attempt to replace Windows; it is a strategic maneuver to extend the Steam ecosystem into the living room with the same optimized, console-like UX that made the Steam Deck successful.
The new Steam Machine has far-reaching implications across the industry:
The announcement validates the SteamOS market, moving it beyond the handheld niche. Developers now have a significant incentive to prioritize and verify Linux/Proton compatibility, ensuring their games run well on both the Steam Deck and the high-performance Machine. Crucially, if the Steam Machine achieves significant unit sales, its single, defined hardware profile (Zen 4 CPU, RDNA3 28CU) could easily turn it into a new baseline performance optimization standard, a stable target for game performance testing, similar to consoles. For Publishers, this opens up a new, highly engaged install base (Steam users are typically high-spending and loyal).
The Multiplayer Hurdle
The primary obstacle here is anti-cheat. Many major multiplayer titles (e.g., Call of Duty, Valorant) utilize invasive kernel-level anti-cheat software that does not support the open nature of the Linux kernel. Unless Valve can convince these publishers to enable user-space anti-cheat compatibility, a large segment of the competitive gaming market remains inaccessible, limiting the Steam Machine's ability to compete fully with traditional consoles.
This device offers the ultimate in flexibility. PC gamers can maintain their vast Steam library while choosing their preferred method of play: desktop, laptop, handheld (Deck), or living room console (Machine), all with synchronized saves and purchases. It democratizes the "couch PC" experience.
Valve’s hardware pushes are a direct, structural challenge to Microsoft on two fronts:
From my perspective, this second-gen Steam Machine is smartly avoiding a head-on console war with PlayStation and Xbox especially since Valve already started eating Microsoft's lunch to a degree with the introduction of the Steam Deck and its tireless efforts in turning Linux not only into a Windows contender but also creating a more console-like, user-friendly experience. With the new Steam Machine it just might be carving out its own niche yet again, the "Couch-Optimized PC Console." I see this as a clever strategy to create and dominate a new, high-value segment in the gaming market, rather than just being another competitor.
Zoran Roso stands as a highly influential veteran of the video game and entertainment industry, with a distinguished career spanning over 25 years in global publishing, marketing, and leadership roles. His professional journey includes serving in significant executive positions at some of the world's most recognizable gaming giants, including Rockstar Games/Take 2 Interactive, Activision Blizzard, and Sony PlayStation, where he was instrumental in the marketing and strategic positioning of flagship AAA franchises and brands. Most recently, he leveraged this extensive experience as the Global Publishing & Marketing Director at Tencent Games, a critical role focused on expanding the company's international reach and developing successful go-to-market strategies for its massive portfolio of internal and partner studios.
Now operating as the founder of ZR Consulting, Zoran continues to drive success in the industry by advising major global publishers and developers. His firm specializes in crafting winning strategies for international brand development, optimizing live service performance, and executing flawless launch plans across all major platforms, including console, PC, and mobile. An active figure in the global games community, his career is marked by a clear strategic vision and a successful track record in translating complex products into global commercial successes.
Contact details:
ZR Consulting
eMail: zoran.roso@zrconsulting.de
LinkedIn: https://www.linkedin.com/in/zoran-roso/
