Valve has hinted about the potential release of a next-gen Steam Deck with a more powerful chip. However, Valve made it clear that the gameplay experience must remain consistent across devices. They are looking for a significantly more powerful chip without sacrificing battery life and power efficiency.
Valve hinted that it may take a few more years before a true next-gen Deck with a significant horsepower bump is released.
Valve has learned about pricing from the original Steam Deck, with Gabe Newall describing the entry price being the critical factor. Valve initially thought that the entry price would be critical to its success, but it turns out that the most popular SKU is the most expensive one.
The release condition for Steam Deck 2 in pricing and model version could change when it is more likely to be released in a few years.
At this point, it is hard to say what the specs of the Steam Deck 2 could be and there is a good chance that Valve doesn’t know yet. The online speculation suggests that the chip could be an updated APU from AMD using their not-yet-released RDNA 4 graphics architecture and Zen 4 CPU architecture.
Valve has publicly said that the Steam Deck 2 will be much faster than the original Steam Deck but peak performance will not be the primary concern since power efficiency and battery life are clearly the primary focus for Valve.
The Steam Deck 2 may potentially have a display resolution and refresh rate different from the Steam Deck OLED. However, Valve wants to match the display to the device's capabilities.
For now, speculations surround what the second-generation Steam Deck could look like. We would likely have a good idea of what it would look like before Steam Deck 2’s release in a few years since Valve doesn't manufacture many chips.
A generation leap in compute that does not sacrifice battery life or power efficiency is what Valve is looking for, and it is clear that they are thinking about the future of the Steam Deck.
Steam Deck 2's software is still very much a work in progress, and there are features now that weren’t available for the Steam Deck, which could potentially make a significant difference for the Steam Deck 2, likely making it faster than the original Steam Deck.