Valve Announces Steam Machine Launch & Pricing, Steam Controller Delays

Valve Corporation has announced pricing and a launch timeline for its upcoming Steam Machine console, while also providing updated delivery estimates for the Steam Controller.

The Steam Machine is scheduled for release via a reservation system beginning in late June 2025. The Steam Frame VR headset remains unannounced. The Steam Deck 2 is in development, though a release timeline has not been provided.

Steam Machine Launch and Pricing

Configurations and Cost

Valve announced four configurations of the Steam Machine, with prices starting at $1,049. The pricing reflects component costs, particularly for RAM and storage, which Valve stated made its original price goal unviable.

The available models and their US prices are:

The 2TB model includes two additional swappable faceplates (red fabric and solid walnut) in addition to the standard black faceplate. Valve stated it is selling the Steam Machine at component cost without subsidy.

Specifications

Both models share the following core specifications:

• Semi-custom AMD Zen 4 CPU (6 cores / 12 threads)
• Semi-custom AMD RDNA3 GPU (28 compute units)
• 16GB DDR5 RAM and 8GB GDDR6 VRAM
• Wi-Fi 6E, Bluetooth 5.3, Gigabit ethernet
• Integrated Steam Controller wireless adapter
• SteamOS 3
• Small form factor (~6-inch cube)

The 512GB model includes a 512GB NVMe SSD, while the 2TB model includes a 2TB NVMe SSD. Both models have a microSD card slot.

Reservation System

Valve is implementing a reservation system designed to limit resellers and bots. Key details of the system include:

• Sign-up window: Open until June 25, 2026, at 10:00 AM PT / 1:00 PM ET.
• Eligibility: Customers must have a Steam account in good standing and have made a purchase on Steam before April 27, 2026. Limit of one reservation per household.
• Process: After sign-ups close, Valve will perform a one-time randomization to determine reservation order. Customers can sign up for multiple configurations and shipping regions (North America, UK, EU, Australia).
• Notification: Emails will be sent on June 25, 2026, notifying customers of their status (reservation queue or waitlist). Those in the reservation queue will receive purchase option emails starting June 29, 2026.
• Purchase window: Reservation holders have 72 hours to complete the purchase.
• Configurations: Configuration choices cannot be changed after the sign-up window closes. If assigned multiple reservations, the customer will receive the highest-end model and be removed from other lists.

Performance Claims

Valve initially stated the Steam Machine is capable of "4K gaming at 60 FPS with FSR." The company later updated its official product page, replacing that claim with "Up to 4K gaming with FSR 4.1." Performance testing by third-party journalists indicates the Steam Machine's performance is comparable to a standard PlayStation 5.

Steam Controller

Delivery Estimates

Valve announced that new Steam Controller reservations will have delivery windows of September 2026, December 2026, or 2027. The company stated it has no plans to discontinue the controller but that current demand exceeds production capacity for the year.

Availability and Pricing

The Steam Controller launched on May 4, 2026, at a price of $99 in the United States. It sold out approximately 30 minutes after launch. Valve implemented a reservation queue for subsequent sales. Customers on the waitlist are given 72 hours to complete a purchase once notified.

Compatibility

The Steam Controller is designed for use with Valve's Steam platform and Steam-dedicated hardware, including the Steam Deck and the upcoming Steam Machine. It operates wirelessly and connects via a "Steam Controller Puck" which also functions as a charging station. It is not compatible with PlayStation 5 or Xbox Series X consoles.

Steam Frame VR Headset

Launch Status

Valve has not announced a specific release date or pricing for the Steam Frame VR headset. The company originally planned an early 2026 launch but delayed the product due to component sourcing issues. Valve confirmed both the Steam Machine and Steam Frame will launch during summer 2025.

Verified Program

Valve announced a "Standalone Verified" program for the Steam Frame, focused on the performance of games running in standalone mode (as opposed to games streamed from a PC).

Specifications and Imports

The Steam Frame is powered by a Qualcomm Snapdragon 8 Gen 3 chip and 16GB of LPDDR5X RAM. It uses a translation layer to run x86-based Steam games but is "primarily designed" for streaming games from a PC. The headset weighs 654g with controllers.

Import records from June 2025 show approximately 13 metric tons of "Virtual Reality Devices" arriving in the US on behalf of Valve. Analyst estimates suggest this represents fewer than 20,000 units of the Steam Frame.

Steam Deck 2 Development

Valve programmer Pierre-Loup Griffais confirmed the company is working on Steam Deck 2. He stated that no current system-on-a-chip (SoC) offers the performance leap necessary for a true next-generation handheld. Valve has indicated it has "a pretty good idea" of the final design and aims for a "significant" upgrade.

Industry Context and Analyst Views

Hardware Shipments

Valve imported approximately 141 metric tons of "Game Consoles" into the US starting April 23, 2025. Analyst estimates suggest this represents fewer than 50,000 units of the Steam Machine.

Analyst Perspectives on Pricing

"Not surprised by the price; had predicted consoles could breach $1,000." — Joost van Dreunen (Aldora)

"Not surprised; the price reflects component costs." — Manu Rosier (Newzoo)

"Somewhat surprised; had predicted $700-$800. Valve lacks hardware scale to subsidize." — Piers Harding-Rolls (Ampere Analysis)

"Surprised the price was not higher; considers it reasonable." — Mat Piscatella (Circana)

Sales Expectations

• Piscatella: Expects initial sellouts due to limited supply.
• Van Dreunen: Expects niche sales, not mass-market volumes.
• Harding-Rolls: Predicts under 1 million units sold this year.
• Rosier: Expects small volumes, limited by supply and demand.

Market Implications

• Van Dreunen: Expects next-generation consoles from other manufacturers to exceed $1,000.
• Harding-Rolls: Believes Sony and Microsoft can keep base models under $1,000 due to scale and subsidies.
• Piscatella: Uncertain due to volatile component supply.
• Rosier: Predicts base models under $999 for psychological reasons; premium tiers may exceed.