Valve’s Steam Deck Targets the Big Three Video Game Device Makers

Valve Corp. is one of the strangest forces in video games. Co-founder Gabe Newell left a programming job at Microsoft Corp. in 1996 to make an art-house shooter game starring a scientist whose research lab is invaded by aliens. The title, Half-Life, and a spinoff, Counter-Strike, were gigantic hits, and Valve built on those successes by creating sequels it distributed exclusively on its online store. The shop, Steam, soon dominated the PC game market and helped Valve fund an eclectic and expensive array of ventures in virtual reality and game consoles that were commercial flops.

The latest experiment is one that competitors are taking seriously. The Steam Deck, which began shipping to customers on Feb. 25, is a handheld computer that resembles a supersize version of the Nintendo Switch, the bestselling game console of the last five years. Nintendo Co. has sold more than 100 million units, but Valve has a unique advantage: Steam is used by 120 million gamers a month, and the Deck can run most games on the store. Microsoft and Sony Group Corp. both sell PC software on Steam, making the Deck the only game device that can run the Xbox hit Halo Infinite as well as the PlayStation’s God of War.