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Steam Machine with the power of Steam Deck OLED without a screen or controller might make sense and should be much cheaper too
or for playing older games or with lower settings
A Valve console would be much more powerful than the Steam Deck and designed to run AAA games with Ray tracing. It would be designed for big screen play, get Steam into the living room under the TV.
Why not? It would undoubtedly be cheaper than an equivalent self built PC.
After partnering with AMD to design the custom APU the Steam Deck uses, I wouldn't be surprised if they've cultivated contacts in the hardware market that owes them favors. It's not what you know, but who you know, and all that.
Microsoft and Sony look for parity with each other. It’s no coincidence they launch together and have similar specs every 6 years or so.