Steam Deck 2 and Valve Home Console Might Be on the Way

Efe Udin

July 23, 2025

Valve may be getting ready to take a big step in gaming hardware. A recent podcast has sparked comments that the company is working on both a Steam Deck 2 and a new home console. If true, this could mean Valve is ready to compete more seriously in the console space.

A More Powerful Steam Deck

Podcast host Tom from Moore’s Law is Dead mentioned that Valve’s next handheld might be powered by AMD’s upcoming “Magnus” chip. This would be a big upgrade from the original Steam Deck. While the first device felt like a test, this new one could launch like a proper console, with stronger hardware, better support, and a clear long-term plan.

Sony Is Quietly Supporting the Steam Deck

What’s surprising is Sony’s growing support for the Steam Deck. Jimmy Champagne, a content creator and guest on the podcast, pointed out that several big PlayStation games now work well on the Deck. Some even have custom boot screens made by Sony. This is not something Microsoft has done for any of its games.

A Possible Alliance Between Valve and Sony

The podcast suggests that Sony might be warming up to Valve as a quiet partner. Since Sony doesn’t have a full handheld system right now (the PlayStation Portal only streams games), the Steam Deck is filling that gap. As more PlayStation games come to Steam, the Deck is starting to look like an unofficial Sony handheld.

Microsoft’s Handheld Strategy Feels Rushed

In contrast, Microsoft’s work with ASUS on the ROG Ally X seems rushed. The podcast notes that the branding and message around the device are a bit confusing. This may give Valve and Sony a better chance to connect with fans of handheld gaming.

Could a Valve Console Be Next?

Will Valve release a console specifically for home entertainment? This is a question that begs for an answer. However, should this happen, it will be a major advancement. With the help of SteamOS, such a device might be able to compete with Microsoft’s Xbox as well as seriously challenge Windows as the industry standard for gaming platforms. Despite the lack of official confirmation, there are a number of signs that point to Valve getting ready to broaden its scope beyond handheld electronics.

The Bottom Line

Given AMD’s new chips, Sony’s robust support, and Valve’s increasing emphasis on hardware, it may not be long before a Steam console coexists with the PS6 and the upcoming Xbox.

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