Not only is Valve bringing a new Steam Controller, they are also bringing back Steam Machines. Their first foray into a console like PC didn't go as planned, but they are looking to fix that with the quaint little cube that will be released early next year.

The Steam Machine is a PC made for your living room and it's said to be six times more powerful than the very capable Steam Deck. This small form factor PC houses an AMD Zen 4 with 6 cores and 12 threads with a boost of up to 4.8GHz. Its graphics are powered by a semi-custom AMD RDNA3 GPU with 28 compute units and 8GB of GDDR6 VRAM. For the computer, the Steam Machine will come with 16GB of GDDR5 memory.
As with the Steam Frame, there will be two storage options available. You'll be able to grab one with 512GB of storage or 2TB. No word yet if you can upgrade it yourself, but I'm going to go out on a limb and say yes considering you can do so on the Steam Deck. It will also have a microSD card slot so you can expand the storage capabilities that way as well.

Two I/O ports will be available with one being DisplayPort 1.4 which can do up to 4K at 240Hz. The other will be an HDMI 2.0 port that can do 4K at 120Hz. Both will be capable of HDR and Freesync with the HDMI port supporting CEC.
The tiny little box stands at 152mm tall, 162.4mm deep, and 156mm wide and weighs 2.6 kg. In the front will be a light bar which you can set to do different types of notifications.

All this will run SteamOS 3, which will be very familiar for those who have a Steam Deck. Hopefully, this is one step closer for Valve releasing an official SteamOS installer for those of us who want to build one. I'm currently building a SFF living room PC and would love to put SteamOS on it instead of Windows.
This looks like an interesting little living room console/PC and I've already had a few of my console playing writers interested in picking one up. Like all the hardware announcements today, look for this one early next year with a price set to be announced later on.