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Steam Deck 2 and Valve home console in the works as quiet Sony partnership hints at strategic alliance

A Steam Deck displaying the SteamOS home screen lies on a glowing white desk next to various Windows-based handheld gaming PCs, including the ASUS ROG Ally and Ayaneo devices. (Image source: Notebookcheck)
A Steam Deck displaying the SteamOS home screen lies on a glowing white desk next to various Windows-based handheld gaming PCs, including the ASUS ROG Ally and Ayaneo devices. (Image source: Notebookcheck)
Valve may be gearing up for a major hardware expansion, with speculation around a Steam Deck 2 and a dedicated home console gaining traction. A recent podcast discussion also hints at a quiet but strategic alignment between Valve and Sony in the handheld gaming space.

A new episode of the Broken Silicon podcast featuring Steam Deck content creator Jimmy Champagne has sparked fresh speculation around Valve’s hardware roadmap, suggesting not only a Steam Deck 2 but also a full-fledged Valve home console might be in development. And quietly but notably, Sony appears to be collaborating with Valve more closely than ever before.

According to podcast host Tom from Moore’s Law is Dead, internal leaks suggest Valve is working on a next-generation device with significantly more power, possibly based on AMD’s upcoming Zen 6-based “Magnus” APU, which could also be powering the next-gen consoles from Sony or Microsoft. Unlike the first Steam Deck, which was initially seen as an experiment, this next device is allegedly being treated more like a proper console launch, with full-scale support and long-term vision.

What makes this even more interesting is Sony’s quiet but consistent effort to support the Steam Deck, an observation highlighted by Jimmy during the podcast. He points out that multiple first-party PlayStation titles are now Steam Deck Verified, and that Sony has even released custom Steam Deck boot animations for games like God of War, Ghost of Tsushima, and The Last of Us, a level of support not mirrored by Microsoft. According to Jimmy, Sony’s PC ports not only run well on the Deck, but the company appears committed to making them feel native to the platform.

A Steam Deck running a game is surrounded by other handheld gaming consoles under soft lighting, with the on-screen label “Steam Deck Max Wattage” in the top left corner. (Image source: Notebookcheck)
A Steam Deck running a game is surrounded by other handheld gaming consoles under soft lighting, with the on-screen label “Steam Deck Max Wattage” in the top left corner. (Image source: Notebookcheck)

This has led to speculation by the podcast hosts that Sony may view Valve as a less threatening ally in the handheld space compared to Microsoft. As discussed in the episode, with no true handheld PlayStation on the market, and the PlayStation Portal limited to streaming, the Steam Deck might currently serve as a sort of unofficial Sony handheld in practice, especially as more PlayStation exclusives continue to arrive on Steam.

Meanwhile, Microsoft’s recent move to co-develop the ROG Ally X with ASUS, branded as an “Xbox device,” feels comparatively rushed, as per Jimmy. The podcast points out branding inconsistencies and unclear messaging, which may have opened the door for Valve and Sony to build mindshare among handheld enthusiasts.

As per the discussion in the podcast, if Valve does launch a dedicated home console alongside the Steam Deck 2, it would mark a new phase in its hardware ambitions, one where SteamOS becomes a legitimate competitor to Windows 11 for gaming, and the company challenges not just Xbox, but the entire console market on its own terms.

While nothing has been officially announced, the podcast discussion points to a scenario where the pieces could be falling into place. Between AMD’s scalable APU roadmap, Valve’s growing hardware presence, and Sony’s unexpectedly proactive support, the hosts suggest it’s no longer unthinkable that a Steam-powered console might one day stand shoulder to shoulder with the PS6 and Xbox’s next move.

You can watch the full episode linked down below to listen to the entire conversation.

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> Expert Reviews and News on Laptops, Smartphones and Tech Innovations > News > News Archive > Newsarchive 2025 07 > Steam Deck 2 and Valve home console in the works as quiet Sony partnership hints at strategic alliance
Anmol Dubey, 2025-07-23 (Update: 2025-07-23)