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Still, the advantage of a Steam Deck over a laptop for portable gaming is that the Deck is far more comfortable to hold. Despite their name, laptops really aren't meant to be used on your lap. But the Deck? No issues resting my hands on my legs. Plus a lot of games don't play well with keyboard and trackpad, so you'd want a mouse or controller to add to your laptop. Deck has the controller built right in. No mouse, but again, no good mouse input on a laptop without adding a mouse there either.
I wouldn't expect Valve to make one though. One of these other companies like GPD or Aya Neo... Maybe. I would play a lot of very low powered indie platformers and Metroidvanias on it.
Making the Deck pocketable is entirely making it a worse device.
For the title question: no, they aren't going to do that. The specifics that Valve have alluded to in a successor device are: a big enough step up in raw performance to be worth sacrificing the single development target for; better battery life; a better display. Those design goals are going to lean towards a bigger device rather than a smaller device.
However, there are smaller, less comfortable, devices available from other manufacturers such as Aya Neo if that is particularly important to you: the PC space is big enough for everyone.
I said the size.
Everything else better. Resolution better, CPU gpu ram better. COnnect to the internet.
IDK make it able to connect to a monitor somehow. A dock with the input's like USB's when connected to the monitor.
I got a gaming phone. It plays pub G, cod and all that to pretty much max setting and be able to connect a controller to it somehow. But that's android. Glad i got something on the go. It's all in one.
For other specs, you want better components in a smaller package, then the problem comes, holding the technology constant, you want faster SoC, it will be more power hungry, you need more bulk for the heat dissipation, and eat up battery faster, if you don't want it to get bigger, you will end up with a device overheat easily, and the battery wont last an hour, portable devices are all about trade-offs, every design decision comes with CONSEQUENCES. For example, some mentioned the superiority of efficiency of the ARM architecture (Yes I am talking about those SD 8 Gen 2 fanboys who might look forward for the AYN Odin 2), they just don't accept the fact that the mass majority of modern PC titles won't be ported to Android in foreseeable future, and you end up with a power efficient device with no games to play with.
The phone has pretty high resolution. and that size. plays cod, pub g pretty max settings. Well the new one's. galaxy s 22 or whatever. I just got a Chinese gaming phone.
Want something that can have windows 11 installed without issue. For steam and other PC related stuff. and the buttons.
I think i am better off with a elite laptop.
Steam deck looks like a good unit. You can hold it in front of you. maybe sit with it on the bus.
But, yeah, if you plan to never play it while traveling and prefer to be stationed at a table or such at all times, a laptop may be a better fit for you.