Valve is waiting to create the Steam Deck 2 until major silicon and architectural improvements emerge — drastically better performance with the same battery life is not enough

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Steam Deck 2 will be a true next-gen product.

Steam Deck OLED
(Image credit: Tom's Hardware)

Valve unveiled its new batch of hardware for 2026 yesterday, including a new Steam Machine, Steam Controller, and even the Steam Frame VR headset. One particularly beloved device was missing from the pack, though, and that's the Steam Deck. Now, Valve has confirmed that the Steam Deck 2 is still probably years away, noting it is waiting for a major leap in silicon to deliver the performance jump it deserves.

Launched three years ago, the Steam Deck has received only one major upgrade, the OLED variant, with many left seeking a little more juice out of this handheld. Unfortunately, the wait won't be cut any shorter as Valve has just made its priorities clear — it envisions the Steam Deck 2 as a true next-gen leap, not an iterative upgrade. Pierre-Loup Griffais, a software engineer at Valve and the lead developer behind SteamOS, spoke to IGN, clarifying, "The thing we're making sure of is that it's a worthwhile enough performance upgrade to make sense as a standalone product."

The new AMD Ryzen AI Z2 Extreme chipset

(Image credit: AMD)

“We're not interested in getting to a point where it's 20 or 30 or even 50% more performance at the same battery life. We want something a little bit more demarcated than that. So we've been working back from silicon advancements and architectural improvements, and I think we have a pretty good idea of what the next version of Steam Deck is going to be, but right now there's no offerings in that landscape, in the SoC landscape, that we think would truly be a next-gen performance Steam Deck,” he told IGN.

To jog your memory, the Steam Deck shipped with AMD's Z1 Extreme chip, which has since been succeeded by the Z2 Extreme — as found in the ROG Xbox Ally X — offering remarkable improvements in low-wattage scenarios and respectable bumps at higher TDPs. But apparently, something like the Z2E isn't sufficient for Valve, and it's betting on upcoming silicon to address even more shortcomings.

AMD does have high-performance Strix Halo APUs at the moment, the top-end model offers 40 RDNA 3.5 CUs, matching RTX 4060 laptop performance. That's a massive jump available to harvest right away, and even if it's efficient, it's certainly not cheap, and a Steam Deck successor cannot compromise on accessibility.

Therefore, perhaps the next lineup from AMD is what brings Strix Halo numbers to the masses, at which point Valve might opt for it in the Steam Deck 2. These comments echo prior sentiment from the company, such as last year when it said Steam Decks won't have annual releases, and even before that, in 2023, when Valve confirmed the next Steam Deck is at least 2-3 years away, though the timeline likely shifted a bit when Valve's new PC-centric hardware came into the picture.

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Hassam Nasir
Hassam Nasir
Contributing Writer

Hassam Nasir is a die-hard hardware enthusiast with years of experience as a tech editor and writer, focusing on detailed CPU comparisons and general hardware news. When he’s not working, you’ll find him bending tubes for his ever-evolving custom water-loop gaming rig or benchmarking the latest CPUs and GPUs just for fun.

20 Comments Comment from the forums
  • -Fran-
    "To jog your memory, the Steam Deck shipped with AMD's Z1 Extreme chip, which has since been succeeded by the Z2 Extreme — as found in the ROG Xbox Ally X"

    I'm pretty sure this is incorrect. It's a variant of Van Gogh, which is an APU with Zen2 and RDNA2 in it.

    Also, looking at how Valve has been approaching their hardware so far, the "waiting for next generation hardware" is such a cynical thing to say. They're using garage sale type of hardware here. The Frame is using a lower (ish) end variant of the new Snapdragon stuff. The GabeCube is using handicapped variants of mobile SKUs that AMD just wanted to get rid of: Zen4 APU and 7600M (cutdown) equivalent. The controller is the only standout, as they developed, with partners, a good improvement on what is out there for controllers.

    So yeah... Not believing Valve on this one. The Deck 2 will probably use Strix Halo when AMD just wants to get rid of the remaining stock. No way they'll use bleeding edge or custom made for it. The last time they did something big like that was the Index and I'm still shocked over them not making a proper successor and getting the Frame instead. Sure, a Quest3 competitor, but not having all the current Index features in it is rather pathetic.

    Regards.
    Reply
  • usertests
    -Fran- said:
    So yeah... Not believing Valve on this one. The Deck 2 will probably use Strix Halo when AMD just wants to get rid of the remaining stock. No way they'll use bleeding edge or custom made for it.
    No, they have been pretty clear and consistent about what they are prioritizing. They want to keep the TDP at 15W and below. Strix Halo doesn't show benefits over Strix Point (e.g. Z2 Extreme) until around 25W, and needs more power to really take off.

    Their statements lead me to believe they want at least 3x performance per Watt, possibly only achievable by going to RDNA5 or later. FSR4+ at the higher quality modes could be used to hit a 1080p 60 FPS minimum performance target instead of 720p 30 FPS.

    Valve got lucky by snatching an appropriate custom APU for the Steam Deck. They'll have to decide if they want to go with an off-the-shelf APU, which tend to have a poor CPU/GPU/bandwidth balance, or get a new custom design with more flexibility. But AMD is starting make APUs that are more appropriate for handhelds. There's also a possibility of using ARM, even with RDNA/UDNA-based graphics, but I wouldn't bet anything on that.

    Sure, they used leftover parts for the GabeCube, but those are lowering the costs and risks for a product that could end up shipping less units than the Steam Deck 1 (around 5 million so far). Steam Deck 2 is more likely to get a custom monolithic APU. But maybe it won't, which means they need to wait.

    "Halo" uses too much power. A Zen 6 "Halo Mini" might be moving in the right direction, but still doesn't seem right. The longer Valve waits, the more likely it is that an APU can deliver the necessary large performance increases at constrained TDPs.
    Reply
  • -Fran-
    usertests said:
    No, they have been pretty clear and consistent about what they are prioritizing. They want to keep the TDP at 15W and below. Strix Halo doesn't show benefits over Strix Point (e.g. Z2 Extreme) until around 25W, and needs more power to really take off.

    Their statements lead me to believe they want at least 3x performance per Watt, possibly only achievable by going to RDNA5 or later. FSR4+ at the higher quality modes could be used to hit a 1080p 60 FPS minimum performance target instead of 720p 30 FPS.

    Valve got lucky by snatching an appropriate custom APU for the Steam Deck. They'll have to decide if they want to go with an off-the-shelf APU, which tend to have a poor CPU/GPU/bandwidth balance, or get a new custom design with more flexibility. But AMD is starting make APUs that are more appropriate for handhelds. There's also a possibility of using ARM, even with RDNA/UDNA-based graphics, but I wouldn't bet anything on that.

    Sure, they used leftover parts for the GabeCube, but those are lowering the costs and risks for a product that could end up shipping less units than the Steam Deck 1 (around 5 million so far). Steam Deck 2 is more likely to get a custom monolithic APU. But maybe it won't, which means they need to wait.

    "Halo" uses too much power. A Zen 6 "Halo Mini" might be moving in the right direction, but still doesn't seem right. The longer Valve waits, the more likely it is that an APU can deliver the necessary large performance increases at constrained TDPs.
    You're not wrong, but I used it as an example of what is now "bleeding edge" on tech vs what they'll be using later on.

    Keep in mind all the hardware they're using right now and in their latest offerings has been using discounted hardware from AMD that was going to be written off otherwise.

    My point is: you're saying "RDNA5 and FSR4" (just to pick one), well yes, and that after a few years when AMD doesn't have anyone else that wants to buy those parts. There will be RDNA6 and they'll use RDNA5 instead. That's what I'm saying. Valve is being rather cynical with the expectations based on their latest MO.

    Will their products be cool and accessible? Very possible, since that's exactly what they want. Will they be bleeding edge and "innovative"? I doubt it. They'll have innovative things, but not on the hardware side based on the tech used. I mean, the cameras in the Frame are B/W* and they stated it won't do AR/XR, whereas the Index has colour cameras (3D composite realtime) and can do AR/XR (limited, but still). Heck, you can even convert it to untethered if you want. That's what I mean: they're now going "basic mainstream" instead. That comes with a lot of strings attached.

    EDIT: Thinking about the new controller design, I'm now even doing a double take if it's indeed an upgrade over the original Steam Controller (I have one), since the interaction method changes dramatically and what you can do in the old Steam Controller, you can't do in the new one, but I'll need to check things in it. I'm talking about specific finger movement and "tricks" around the touch pads which are really cool once you master and you can't do anywhere else; not even in the Steam Deck.

    Regards.
    Reply
  • LordVile
    usertests said:
    No, they have been pretty clear and consistent about what they are prioritizing. They want to keep the TDP at 15W and below. Strix Halo doesn't show benefits over Strix Point (e.g. Z2 Extreme) until around 25W, and needs more power to really take off.

    Their statements lead me to believe they want at least 3x performance per Watt, possibly only achievable by going to RDNA5 or later. FSR4+ at the higher quality modes could be used to hit a 1080p 60 FPS minimum performance target instead of 720p 30 FPS.

    Valve got lucky by snatching an appropriate custom APU for the Steam Deck. They'll have to decide if they want to go with an off-the-shelf APU, which tend to have a poor CPU/GPU/bandwidth balance, or get a new custom design with more flexibility. But AMD is starting make APUs that are more appropriate for handhelds. There's also a possibility of using ARM, even with RDNA/UDNA-based graphics, but I wouldn't bet anything on that.

    Sure, they used leftover parts for the GabeCube, but those are lowering the costs and risks for a product that could end up shipping less units than the Steam Deck 1 (around 5 million so far). Steam Deck 2 is more likely to get a custom monolithic APU. But maybe it won't, which means they need to wait.

    "Halo" uses too much power. A Zen 6 "Halo Mini" might be moving in the right direction, but still doesn't seem right. The longer Valve waits, the more likely it is that an APU can deliver the necessary large performance increases at constrained TDPs.
    They’ll wait that long and the chip won’t be powerfull enough for the time as they’ll wait 2 years before selling it. Everything they’ve announced is disappointing and I’m sure will become even more so when they try and sell it for 3x the price they should.

    Steam machine needs to be sub 400 to be viable, the controller needs to be sub 100 and the frame needs to be sub 500. However I’m sure they’ll end up being 800, 150 and 1000
    Reply
  • Roland Of Gilead
    -Fran- said:
    The Deck 2 will probably use Strix Halo when AMD just wants to get rid of the remaining stock
    That's a little bit 'wing and prayer', isn't it? I mean, this is Valve. I'm quite sure they are not just sitting around for AMD to offer such a thing. Surely Valve are working with partners to ensure that when they want to bring the Deck 2 to market, they can do, and with the hardware they envisage.
    Reply
  • usertests
    LordVile said:
    Steam machine needs to be sub 400 to be viable
    That's nutty. You can't build a PC with that level of performance at less than $400, unless you start fishing parts out of the trash. Even the consoles have seen price hikes.

    The controller, sure, a $100 controller would be grating. I don't know enough about what VR buyers are looking for to know what price they could stand.
    Reply
  • LordVile
    usertests said:
    That's nutty. You can't build a PC with that level of performance at less than $400, unless you start fishing parts out of the trash. Even the consoles have seen price hikes.

    The controller, sure, a $100 controller would be grating. I don't know enough about what VR buyers are looking for to know what price they could stand.
    You can buy a console for that that’s more powerful what comes with a controller and better compatibility. On the PC side you could build a PC that destroys it for under 600 if you use the used market and had upgradability. I think they said it was 6x more powerful than the steamdeck which is still way behind the 10x it’s behind the PS5
    Reply
  • ezst036
    It makes sense for Valve to wait for some time before doing a second Steam Deck.

    The Deck is still arguably the best handheld out there. People are out there installing Linux on the Windows handhelds in order to get a better user experience, and also the better performance it brings. But not everybody wants to do an install, so they just buy The Deck.

    This new Steam Machine will give Valve an opportunity to push even further with Steam OS, which will serve to come back around and just continue making The Deck even better.

    OS products aren't segmented the same way in the Linux world as they are for Microsoft.(and to some extent, even Apple)
    People who have never spent any time immersed in the Linux ecosystem are completely clueless to this fact.(bolded) I mean no disrespect, it isn't an insult. It's simply recognition of a different culture when you live your life in a de-monetized de-corporatized environment. "But but but isn't Valve a CoRpOrAtIoN!?!?!?" <-- See, I told you you don't understand.
    Reply
  • TerryLaze
    Roland Of Gilead said:
    That's a little bit 'wing and prayer', isn't it? I mean, this is Valve. I'm quite sure they are not just sitting around for AMD to offer such a thing. Surely Valve are working with partners to ensure that when they want to bring the Deck 2 to market, they can do, and with the hardware they envisage.
    They could if they wanted to, but this is valve...
    They aren't a console company, they don't need to have a consistent release of consoles, the steamdeck is just something gabe wanted to make, same as these things.
    There is nobody chasing them, people are not going to stop buying steam games without a new deck, they can wait as long as they want for new tech to become old enough to be cheap enough for a deck2.
    Reply
  • -Fran-
    Roland Of Gilead said:
    That's a little bit 'wing and prayer', isn't it? I mean, this is Valve. I'm quite sure they are not just sitting around for AMD to offer such a thing. Surely Valve are working with partners to ensure that when they want to bring the Deck 2 to market, they can do, and with the hardware they envisage.
    Much like Terry said: you're giving Valve the benefit of the doubt in their wording. I'm being skeptical based on what they're offering now.

    The biggest takeaway from all the content around the releases is this: "we want to make people enjoy their Steam Libraries in as many ways as possible". That's why the Frame is more like a TV replacement first and a VR headset second. That rationale will carry over whatever Deck successor comes: it'll be "good enough". Nothing more, nothing less.

    Look again at the GabeCube. Zen4 APU and 7500M. That's lame. Why not Zen5X3D and 9600XT? Power envelopes are rather similar, but the price would go up and they don't want that. The tecnology to make a "better" GabeCube is already out there, but they're choosing to use older (cheaper) parts.

    So, while they're not necessarily "winging" things, they're not looking to make "enthusiast" class products anymore. Just the MVP to keep selling you games.

    I'm salty? Yep. I wanted a proper Index successor.

    Regards.
    Reply