We are both engineers at Valve working on the new Steam Frame headset that's going to be released early next year. This headset has a bunch of cool things. Uh first and foremost, it's very small. It's lightweight and it has a modular design.So, this is the front part. We call it the core module. This is an entire VR computer that plays your uh full catalog via streaming and then also on device.It can can play some of those as well. This is the head strap that has a battery in the rear for comfort as well as ...

Core Insights - Valve's Steam Deck has achieved significant success, selling over 4 million units globally by August 2025, despite initial skepticism from the market [1] - Valve is reportedly developing a new gaming device, codenamed Fremont, which features a custom AMD Hawk Point 2 processor and advanced GPU capabilities [3][5] - The Fremont device aims to target the PC and console gaming market, contrasting with the previous Steam Machine's failure due to lack of game support [6][9] Group 1: Product Performance - The Fremont device is equipped with a 6-core, 12-thread CPU based on the ZEN 4 architecture, with a base frequency of 3.2GHz and a maximum boost frequency of 4.8GHz [3] - It features a GPU based on the RDNA 3 architecture, potentially a variant of the Radeon RX 7600, with 28-32 compute units and at least 8GB of dedicated video memory [5] - The performance of the Fremont device is positioned to be superior to that of the Steam Deck, which has a less powerful 4-core, 8-thread CPU and integrated graphics [3][5] Group 2: Market Context - Valve's initial foray into hardware with Steam Machines was unsuccessful, primarily due to competition from Microsoft's Windows ecosystem and a lack of game support on Steam OS [7][9] - The gaming landscape has evolved, with 2K resolution becoming increasingly important for PC and console gaming, posing a challenge for the Fremont device to meet performance expectations [11][12] - The success of the Fremont device is uncertain, as it may face similar pitfalls as the Steam Machine, particularly regarding its ability to deliver high-quality gaming experiences [11][12]

Core Viewpoint - Valve has opened SteamOS to third-party handheld devices, prompting Microsoft to shift its focus from developing a native Xbox handheld to optimizing Windows 11 for third-party devices [1][3]. Group 1: Valve's Strategy - Valve's SteamOS 3.7.8 version has been released, allowing third-party handheld devices to utilize the operating system [1]. - The rapid deployment of SteamOS has disrupted Microsoft's plans in the handheld gaming market [3]. - Steam Deck has revitalized the handheld gaming market, and the tailored features of SteamOS have given Valve a competitive edge [3][5]. Group 2: Microsoft's Response - Microsoft is prioritizing the optimization of Windows 11 for third-party handhelds instead of developing a native Xbox handheld [3][5]. - Phil Spencer, head of Microsoft's gaming division, indicated that most of Microsoft's games can run on devices like the ROG handheld, but they do not see a suitable entry point into the market [5]. - Windows 11 has become the dominant operating system for x86 handhelds, but its performance and battery life are inferior to SteamOS [10][11]. Group 3: Performance Comparison - Testing shows that SteamOS outperforms Windows 11 by at least 15% in terms of performance for games like Cyberpunk 2077 and The Witcher 3 [10][12]. - Battery life improvements on devices running SteamOS can range from 25% to 200% compared to those running Windows 11 [10]. - Windows 11 on handhelds has been reported to have more bugs and issues compared to SteamOS, affecting user experience [12]. Group 4: Market Implications - The competition between a closed SteamOS and an open Windows 11 is shaping the handheld gaming landscape [5][14]. - Microsoft's strategy mirrors Google's approach with Android, aiming to support OEMs while not directly entering the handheld market [14][15]. - If third-party manufacturers pre-install SteamOS on their devices, Windows 11's competitive advantage may diminish significantly [17].