More rumors surrounding the much-awaited Steam Deck 2 have surfaced online. It has been claimed that Valve is not only gearing up to release a sequel to the handheld, but also a home console – likely akin to the Steam Machines of the past. This would make sense given the company’s push to bring SteamOS to more devices this year. It’s also speculated that Valve is quietly collaborating with Sony.

In the coming months, a new generation of PC gaming handhelds is set to hit the market. MSI Claw A8 pre-orders have already started in Europe, ASUS has locked in the release window for its upcoming ROG Xbox Ally & Ally X for the holiday season, and Lenovo looks ready to launch the Legion Go 2. However, there’s no official news on the Steam Deck 2 just yet.

Steam Deck 2 and a Valve home console?

In the latest edition of the Broken Silicon podcast, hardware leaker and YouTuber Moore’s Law Is Dead discusses (speculates) Valve’s hardware roadmap with guest Jimmy Champagne. They say that internal leaks suggest Valve’s next-generation device could be based on the upcoming Zen 6-based “Magnus” APU, which was recently rumored to power the next Xbox and PlayStation consoles. We already know that AMD is collaborating with Microsoft and Sony, so Ryzen hardware is more than likely.

They also speculate that Valve sees Sony as less of a threat in the handheld space. There’s the PlayStation Portal, but it’s not a standalone handheld, instead it relies on streaming via PS Remote Play. Furthermore, more and more first-party PlayStation titles are being verified on the Steam Deck; new startup movies for Sony IPs like God of War, Ghost of Tsushima, and The Last of Us are another contributing factor to the speculation. The same level of support for Microsoft IPs isn’t there.

The potential for Valve to grow its hardware portfolio is certainly there; 2025 was expected to be a big year for Valve hardware. In contrast to Sony, Microsoft has been pushing for handheld success, collaborating with ASUS ROG to make the next Ally an ‘Xbox device’ as part of its ‘This Is an Xbox’ campaign. There’s also a push to make Windows 11 better for gaming, so it doesn’t fall behind SteamOS. However, we’ve already seen the Legion Go S SteamOS model outperforming its Windows 11 variant.

A home console running SteamOS no longer seems unthinkable, and Valve will no doubt want to build on the success of the Steam Deck with a sequel to fend off the advancements rivals have made using AMD’s newer Ryzen Z-series processors. So, both a new handheld and home console could be on the cards.

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Charlie Noon

Charlie is the Affiliate manager for PC Guide. He has a vast understanding of most PC hardware and consumer essentials, using his knowledge to provide the best products and the biggest deals.