What Happened to Steam Machines?

The concept of 'Steam Machines' first emerged in 2013 when Valve announced its intention to bring PC gaming into the living room, directly competing with traditional consoles. The initial rollout, in collaboration with various hardware manufacturers like Alienware and iBuyPower, officially launched on November 10, 2015. These machines were designed to run SteamOS, a Linux-based operating system, and offered a console-like experience for Steam's vast game library.

However, the first generation of Steam Machines largely failed to gain traction and was effectively discontinued by 2018. Several factors contributed to this outcome. Valve's Pierre-Loup Griffais later explained that a key issue was the absence of a strong 'reference' product from Valve itself, leading to a fragmented market with inconsistent hardware and pricing from third-party vendors. More critically, SteamOS was not mature enough, and the lack of native Linux game support meant a significantly smaller playable library compared to Windows PCs. The Proton compatibility layer, which now allows many Windows games to run on Linux, did not exist at the time.

Valve learned significant lessons from this initial venture, which directly informed the development of the highly successful Steam Deck handheld gaming PC, released in 2022. The Steam Deck demonstrated the viability of a Valve-designed, Linux-based gaming device powered by a much-improved SteamOS and the crucial Proton compatibility layer.

In a surprising turn, Valve announced a new, singular iteration of the 'Steam Machine' in November 2025, alongside other new hardware like the Steam Frame VR device and a new Steam Controller. This new Steam Machine officially launched in June 2026. Unlike its predecessors, this is a first-party Valve product, addressing the previous criticism of lacking a reference design. It runs SteamOS 3.8, which has significantly expanded hardware support, including for AMD-based systems and even initial support for Intel-based handhelds, with ongoing work for Nvidia GPUs.

As of September 2026, the new Steam Machine is reportedly selling well, with estimates suggesting 12,000 to 15,000 units per week in July 2026, placing it high on Steam's Global Top Sellers list. However, the device has faced supply chain challenges, particularly with RAM and SSDs, leading to a significant backlog in reservations, with some customers not expected to receive their units until the end of 2026 or even into 2027. Valve also adjusted its marketing claims shortly before launch, changing the promise of '4K 60FPS with FSR' to a more general 'Up to 4K gaming with FSR 4.1' due to performance realities. Despite these challenges, the 2026 Steam Machine represents Valve's renewed commitment to a dedicated living-room PC gaming experience, leveraging the technological advancements and lessons learned over the past decade.