Sources told Ars Technica that Valve has been developing a SteamPal portable gaming PC similar to the Nintendo Switch.
It seems to be Valve’s next attempt at bringing its Steam PC platform, using Linux, to run “a large a number of games”.
SteamDB creator Pavel Djunkdik noticed modifications in Steam’s code. He discovered the name of a device called “SteamPal,” an “all-in-one PC with gamepad controls and a touchscreen.”
Though it looks like a Switch, it doesn’t come with the removable Joy-Con controller. However, a prototype offers the option to dock the device to connect to larger monitors using a USB Type-C port. It also offers many options for game controllers. A “Neptune” controller is mentioned.
This update also added a "quick access menu" and a "power menu"
I have a feeling all these strings related to "Neptune": https://t.co/Ih0K2y4E5A
Is Valve making a handheld Steam console?
— Pavel Djundik (@thexpaw) May 25, 2021
"neptuneGamesCollection" first appeared in September update.
That update also added "Device Optimized Games" string.https://t.co/TzM5EMbPKP
— Pavel Djundik (@thexpaw) May 25, 2021
Years ago, Valve had already tried hardware with the release of its Steam Machines in 2015. The company later tried the Steam Link device to stream PC gameplay from PCs to TVs. Unfortunately, Valve discontinued Steam Link in 2018.
Earlier this month in New Zealand, Gabe Newell was asked whether Steam would be porting its PC games to consoles or not. “You will get a better idea of that by the end of this year… and it won’t be the answer you expect,” said Newell.
[Source]: Ars Technica: Exclusive: Valve is making a Switch-like portable gaming PC – [Archive].