Valve’s Master Plan FINALLY comes together

Summary

In this video, the host discusses exciting leaks regarding Valve's new Steam OS hardware, codenamed Fremont, along with an innovative controller called Ibex. These products hint at Valve's potential return to the Steam Machines concept, 10 years after its initial failure. The host explains how Valve's current advantage in hardware, software, and Proton (a translation layer for running Windows games on Linux) positions them to succeed this time. With the potential for a more powerful, affordable, and user-friendly set-top box, Fremont could change the gaming landscape. The video also explores how this development could shake up the console industry, offering players greater choice and competition.

Takeaways

• 😀 Valve is working on a new set-top box codenamed Fremont, likely a revival of Steam Machines 10 years after their failure.
• 😀 The Fremont set-top box will be accompanied by a new controller, code-named IEX, which was discussed in-depth on the Nerd Nest podcast.
• 😀 Fremont is believed to have a full-size HDMI Type A port, indicating it's a set-top box, as handhelds typically don't include such large ports.
• 😀 The failure of Steam Machines a decade ago was due to two major factors: lack of Proton support for Windows games on Linux and overpriced third-party hardware.
• 😀 Proton, now a stable translation layer, allows Steam games to run on Linux-based systems, making the Fremont set-top box viable for most games on Steam.
• 😀 Valve's ability to make affordable hardware is a key factor in Fremont's potential success, as they can subsidize costs with profits from the Steam store.
• 😀 Fremont is likely to be much more powerful than the Steam Deck, benefiting from the lack of limitations imposed by handheld design (battery, heat, size).
• 😀 The Fremont device should ship with the new Steam controller (Ibex), which will likely have features like trackpads and offer a console-like experience.
• 😀 Valve’s private company status allows them to take long-term risks that other companies, driven by investor interests, cannot afford.
• 😀 The competition in the gaming industry could be positively affected by Valve's entry into the market with Fremont, providing consumers with more choices and potentially keeping companies like Sony in check.

Q & A

What is the Fremont project from Valve, and why is it significant?

The Fremont project is a set-top box being developed by Valve, likely codenamed after the city of Fremont, where the company operates. It is significant because it represents Valve's return to the Steam Machines concept, a project they previously attempted 10 years ago but failed due to several factors. Fremont aims to provide a more polished and affordable alternative to current gaming consoles while benefiting from Valve's experience with hardware like the Steam Deck.

Why is Fremont expected to be a set-top box and not another handheld device like the Steam Deck?

Fremont is expected to be a set-top box because leaked references suggest it will include a full-size HDMI Type-A port, which is typically used in TV-focused consoles or desktop computers. This is not commonly found in handheld devices due to space constraints. The set-top box will likely allow users to connect it to their TVs and play games without the limitations of battery life, portability, or heat issues that come with handheld devices like the Steam Deck.

How does Valve's approach to hardware differ from other companies, and why is this important for the success of Fremont?

Valve's approach to hardware differs from other companies because it is a privately-owned company without the pressure from investors. This allows Valve to think long-term and make decisions that prioritize the quality and usability of its products over immediate profit. This unique position gives Valve the flexibility to experiment with projects like Fremont without being limited by short-term financial pressures, which is a key factor in their potential success.

What caused the failure of the Steam Machines project 10 years ago, and how is Valve addressing those issues this time?

The Steam Machines project failed due to two main reasons: the lack of a stable compatibility layer like Proton (which now allows Windows games to run on Linux) and the high costs associated with third-party hardware manufacturers. Valve is addressing these issues with Fremont by ensuring compatibility with Proton, which allows more games to run smoothly on Linux-based systems, and by keeping hardware prices competitive, leveraging their existing infrastructure to subsidize costs.

What role does Proton play in the potential success of Fremont?

Proton is a crucial part of Fremont's success because it enables Linux-based systems to run Windows games. Ten years ago, Valve's Steam Machines struggled due to the lack of native game support for Linux, but now, Proton allows users to play most Steam games without requiring developers to create Linux versions. This eliminates the compatibility issues that hindered the first Steam Machines and makes Fremont a more attractive option.

Why is Valve uniquely positioned to succeed where other companies might fail in the gaming console market?

Valve is uniquely positioned to succeed because it operates as a private company, which allows it to prioritize long-term success without the pressure of short-term returns for investors. Additionally, Valve has a solid foundation in hardware development with products like the Steam Deck and Steam Deck OLED. This experience, coupled with its ability to subsidize costs through the Steam store, gives Valve a competitive edge in both hardware and game distribution.

How does the development of Fremont impact the wider gaming industry?

Fremont's development could have a significant impact on the gaming industry by introducing more competition to the console market. With access to a massive library of Steam games and a focus on affordability, Fremont could offer a compelling alternative to established consoles like PlayStation and Xbox. By keeping Sony in check and offering a more open, versatile gaming system, Fremont could reshape how consumers view gaming hardware.

What are some key features that Fremont needs to succeed?

Fremont needs to be more powerful than the Steam Deck, which means it should have the capability to run games at higher performance levels without being limited by handheld constraints. It should ship with a controller, possibly the Ibex controller, which includes features like trackpads and offers a comfortable gaming experience. Additionally, Fremont should offer easy plug-and-play functionality, access to a broad game library, and be affordable while maintaining high performance.

What are the differences between Fremont and traditional gaming consoles like PlayStation or Xbox?

The key difference between Fremont and traditional consoles is that Fremont would run on SteamOS, offering access to a library of over 70,000 games on Steam, rather than being locked into a proprietary game store. Unlike PlayStation or Xbox, which are limited by exclusive games and closed ecosystems, Fremont would give users more freedom and flexibility. It would also be cheaper and could be customized by users, whereas consoles tend to be more rigid in terms of both hardware and software.

How does Valve plan to make Fremont affordable compared to other gaming consoles?

Valve plans to make Fremont affordable by leveraging its existing infrastructure. As with the Steam Deck, Valve can subsidize the cost of hardware through the revenue generated from game sales on Steam. This gives Valve the ability to offer Fremont at a lower price compared to other gaming consoles, which don’t have a similar mechanism to offset hardware costs through digital storefronts.