Steam Controller Returns: Second-Generation Model Launches at $99.99, 11 Years After Original
Valve has released a second-generation Steam Controller for $99.99, arriving 11 years after the original. The new device is designed for use with Steam on PC, the Steam Deck, and mobile devices via the Steam Link app.
The release occurs during a period of significant price increases across the handheld gaming and PC hardware markets, driven by rising component costs, tariffs, and inflation.
Design and Features
The new controller is heavier and more solid than its predecessor. Its control layout has been redesigned to match the Steam Deck, featuring two analog sticks, a directional pad, four face buttons, and centrally located touchpads placed lower to reduce accidental contact.
Key Hardware Specifications
- Tunnel magnetoresistance (TMR) analog sticks designed to reduce drift
- Two touchpads
- Gyroscopic controls
- Four permanently attached rear buttons
- Capacitive grip sensors on the left and right grips
- Haptic feedback
Connectivity and Power
- USB-C wired connection
- Bluetooth wireless
- Proprietary magnetic transmitter puck (included) for wireless use and charging
- Valve reports up to 35 hours of battery life per charge
Software and Customization
The controller is configured through the Steam platform. Users can remap controls, adjust sensitivity, and save profiles per game. Community-created profiles are also available.
Compatibility
- Works with Steam on PC and Steam Deck
- Works with the Steam Link app on mobile devices
- Does not appear as a standard XInput gamepad in Windows
- Does not support consoles
- Does not support Xbox Game Pass games on PC due to permission restrictions in the Xbox app
Testing Summary
In testing, the controller performed as expected with Steam games and with non-Steam games manually added to the Steam library. Some non-Steam games required manual input configuration. Xbox Game Pass games were not accessible due to system-level restrictions in Windows 11.
Developer Comments
Valve engineer Steve Cardinali and designer Lawrence Yang stated that the grip sensors are intended to keep gyro aiming always active when holding the controller, with the option to reset motion by releasing the grip. The sensors can also be configured to trigger inputs upon release.
Price Increases in Handheld Gaming and PC Hardware
The release of the new controller coincides with significant price increases across the handheld gaming and PC hardware sectors.
Handheld Gaming Device Prices
- The Steam Deck, originally priced at $399 in 2022, now starts at $789
- The Nintendo Switch launched at $299; the upcoming Switch 2 will start at $499
- Microsoft's Xbox Ally X is priced at $1,000
Market Context
- Console gaming prices have increased due to component costs, tariffs, and inflation
- Sony and Microsoft have raised console prices multiple times
- PC gaming component prices, including RAM and storage, have also increased
Component Cost Drivers
- Increased demand for memory and storage components from AI data centers has led to significant price increases
- Microsoft reported a 2.5x increase in memory and storage costs, expecting another doubling by mid-2027
- Apple raised hardware prices by approximately 20%
Industry Impact
- No major competitor has challenged Valve or Nintendo on price for handheld gaming PCs
- Sony has reportedly decided not to bring major single-player games to PC, reducing the available library for handhelds
The rising prices of handheld gaming devices have moved them from an affordable alternative to a more expensive choice, potentially limiting their market appeal.
Alternative Options
- For existing PC libraries: The Steam Deck remains a cost-effective option. Windows users may consider ASUS ROG Ally models
- For new users or budget-conscious consumers: Consoles (PS5, Xbox Series X) or cloud gaming services (GeForce NOW, Xbox Game Pass) are presented as cost-effective alternatives
- DIY PC builds remain viable with careful component selection