Weekly Industry Update: Valve Expands Its Hardware Lineup With New Steam Machine

Top News Items            Industry News   - Week 46,  2025                            ( November 10-16 )

This week brought several significant updates across the gaming industry, with new hardware announcements, platform insights and financial developments from multiple major companies. The highlight was Valve’s introduction of a new line of hardware products, followed by Sony’s latest State of Play and ongoing preparation for next-generation Xbox plans.

Valve Introduces New Steam Machine, Steam Controller and Steam Frame

Valve released a six-minute announcement video unveiling three upcoming products: the Steam Machine, a redesigned Steam Controller and a new VR headset called Steam Frame. The video also briefly referenced future hardware iterations, including Steam Deck 2.

Steam Machine

The Steam Machine is presented as a compact living-room device designed to run games locally through SteamOS. Key details include:

• Targeted launch year: 2026 (exact date not yet announced).

• Hardware specifications:

  • AMD Zen 4 CPU (approx. 2.4–2.5 GHz).

  • Semi-custom AMD RDNA 3 GPU.

  • 16 GB DDR5 RAM.

  • DisplayPort 1.4 and HDMI 2.0.

  • Four USB ports (two USB 3.0 front, two USB 2.0 rear).

  • Wi-Fi 6, Bluetooth and Ethernet.

  • microSD expansion slot.

• Two planned storage SKUs: 512 GB and 2 TB.

• Valve shared internal targets suggesting the device aims to run the full Steam library, with support for 4K60 using upscaling technologies.

The device retains a small cube-like form factor intended for straightforward integration with home entertainment setups.

Steam Controller

The new Steam Controller incorporates updated inputs and technologies compared to its previous version:

• Two thumbsticks and two trackpads.

• Magnetic TMR-based thumbsticks designed for consistent long-term performance.

• Haptics, motion sensors, capacitive touch and grip detection.

• Bluetooth and USB-C connectivity.

• A dedicated “Puck” dongle for stable low-latency connections.

• Approximate battery life of 35 hours.

• Compatibility with Steam Machine, Steam Deck, Steam Frame and PCs running Steam.

Steam Frame (VR Headset)

Steam Frame is positioned as the successor to Steam Index, with support for both standalone and tether-free PC play:

• Snapdragon 4 nm ARM-based processor.

• 16 GB RAM, with 256 GB and 1 TB storage options.

• microSD slot.

• 2160×2160 per-eye resolution, 72–120 Hz refresh rate, up to 110° FOV.

• Low-latency wireless PC link via a dedicated 6 GHz receiver.

• Inside-out tracking with four external cameras and IR illumination.

• Two internal cameras for eye-tracking.

• Controllers based on Index ergonomics, powered by AA batteries (~40 hours).

• Battery life estimated between 1–4 hours depending on usage mode.

Valve also noted it plans to support Android applications on Steam, potentially broadening the device’s content ecosystem.

Sony’s State of Play Highlights Japanese Market Focus

Sony aired a new 40-minute State of Play, delivered fully in Japanese and oriented toward its domestic audience. The event featured 23 titles across various genres, including horror, driving and life-simulation games. Titles such as BrokenLore: UNFOLLOW, Gran Turismo 7 and Damon and Baby received notable attention.

Sony also presented two new hardware accessories:

• A 27-inch 4K gaming monitor with HDR, VRR, up to 120 Hz on PS5/PS5 Pro and up to 240 Hz for compatible PCs/Macs.

• The Pulse Elevate wireless speaker system for PS5, with AI-based noise reduction and integrated multiplayer chat features.

Additionally, Sony announced a new PS5 Digital Edition SKU exclusive to Japan, priced at approximately 55,000 yen (~$350). The model supports only the Japanese language and is positioned as a more accessible option for the domestic market.

Xbox Hardware Planning Continues With Reports on Xbox Magnus

Industry reports indicate that Microsoft has ordered approximately 50 million AMD chips for its next-generation console family, codenamed Xbox Magnus. According to these reports, two SKUs are expected:

• A hybrid console-PC model with a Windows-like environment and support for multiple storefronts, including Steam.

• A traditional console-focused model targeting classic living-room use.

Specific official details—including launch timing and pricing—have not yet been disclosed. The reported strategy follows Microsoft’s broader interest in increasing platform flexibility and developer accessibility.

For reference, PlayStation 5 recently surpassed 80 million lifetime units, according to publicly available market data.

Additional Industry Developments

Discussion Around AI Voice Acting in Arc Raiders

Eurogamer published a review of Arc Raiders that raised concerns about the use of AI-generated supplementary voice lines, despite reported actor consent. The review generated a broader industry conversation about the role of AI-assisted audio production. Epic Games’ Tim Sweeney commented publicly that AI tools, when guided by human direction, may increase production efficiency.

Sony Financial Update: Bungie Performance Noted

Sony’s Q2 FY2025 report showed:

• G&NS revenue of 1,113 billion yen (+4% YoY).

• G&NS operating income of 120 billion yen (–13% YoY).

Sony attributed part of the operating income decline to impairment charges related to Bungie, citing lower-than-expected performance of Destiny 2 versus acquisition-era forecasts.

Xbox Publishes Updated Game Publishing Guide

For the first time in more than two decades, Microsoft publicly released its updated Xbox Game Publishing Guide, removing the NDA barrier and giving developers broader visibility into publishing criteria. ID@Xbox leadership stated the goal is to improve accessibility and clarity for teams of all sizes.

Nintendo Switch 2 UI Update

Nintendo rolled out interface updates for its upcoming Switch ecosystem, adding clearer visual distinctions between physical cartridge titles and digital downloads, alongside minor quality-of-life improvements.

PlayStation Portal Adoption Grows

Sony reported that PlayStation Portal has become the most-used device for Remote Play sessions, reinforcing the product’s intended role in cloud- and remote-based gameplay.

Unity Q3 Results and Product Metrics

Unity posted Q3 revenue of $471 million (+5% YoY), with:

• Create Solutions: +3%.

• Grow Solutions: +6%, driven largely by subscriptions.

• Net income: –$127 million.

Unity also noted increased adoption of Unity 6, surpassing 9.4 million downloads (+42% QoQ), with customer-reported issues down by 22%.

The combined announcements from Valve, Sony and Microsoft illustrate ongoing ecosystem expansion across both console and PC spaces. As hardware platforms continue to diversify, the availability of transparent data, cross-platform modelling and consistent market insights will remain central for understanding long-term performance trends.