Microsoft gaming boss Phil Spencer has welcomed Valve’s next-gen Steam machine in a congratulatory message to Valve.

This week Valve surprised us all with the announcement of three new devices: The tiny Steam Machine PC gaming desktop, the Steam Frame VR headset and a new Steam Controller. In this episode, Devindra and Engadget's gaming reporter Jessica Conditt discuss how these devices fit into the PC gaming world,

With just a microSD card, you’ll be able to easily bring your games across the Steam Deck, Steam Machine, and Steam Frame.

At the other end of the spectrum, Superdata Research founder and SuperJoost newsletter author Joost Van Dreunen predicted the entry-level Steam Machine could come in as low as $549, rising to $749 for the 2TB version (plus an additional $50 for bundles including a Steam Controller).

Valve says the Steam Deck 2 needs larger performance and battery gains, explaining why upgraded hardware is not ready

Valve launched the Steam Controller a decade ago. It was designed to make traditional PC games playable on TVs in tandem with the original Steam Machine, which never took off. Now, Valve has announced a second-generation Steam Controller alongside the newly revived Steam Machine living room console-mini-PC-system.

If Valve takes that affordability approach, then the new Steam Hardware is potentially disruptive to several different areas within the gaming industry. It could pose particular issues for Microsoft, which has recently begun talking about plans for its next-generation Xbox, and to Meta’s current prominence within the VR space.

Valve is reportedly 'looking into' a standalone version of Half-Life: Alyx for its new Steam Frame VR headset, but still requires a lot of work.