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In brief: Valve's SteamOS Linux distro is arguably the Steam Deck's greatest asset and numerous recent leaks indicate that the software is coming to more devices from Valve and third-party manufacturers. A new console-like device resembling the company's abandoned Steam Machines might be among them.
A recent Steam Deck kernel update references a device codenamed "Fremont" that features an HDMI port connected directly to a graphics chip. Although hardware details are scarce, the leak indicates that Valve is likely developing a machine that runs SteamOS and connects to an external display.
Together with information from leaker Brad Lynch, the kernel patch describes a standard-sized HDMI port that links to a GPU without going through USB. This suggests the device is a standalone TV box, not a new Steam Deck dock.
So very likely not a handheld that can be Docked to a TV
But a fully dedicated device with HDMI-Out as a primary focus
Interestingly, ChromeOS code is also present. It might indicate ChromeOS or Android integration, or Valve could simply be using it to manage some background tasks.
Additionally, the code mentions a development platform codenamed "AMD Lilac," which has frequently appeared on Geekbench since early 2023. Most tests utilize Radeon 740M integrated graphics and report scores easily outclassing the Steam Deck. However, Valve isn't the only company that has used Lilac, and it might be a placeholder APU.
Valve convinced various manufacturers to ship PCs called Steam Machines with an early version of SteamOS in 2013, but the idea gained little traction. The Steam Deck enjoyed a far healthier reception partly due to SteamOS's improvements which made installing and playing PC games with a controller easier than ever. A new console-like device with the current version of SteamOS could succeed where Steam Machines failed.
If Fremont is a console-like PC, HTPC, or set-top box, its control method might be the recently leaked successor to Valve's defunct Steam Controller. The renders from last month show a traditional gamepad design with trackpads resembling those on the Steam Deck. A pair of motion controllers for Valve's rumored standalone VR headset also leaked. Design specifications indicate that the new Steam Controller and motion controllers could enter mass production sometime next year.
Additionally, Valve's latest branding guidelines suggest that it plans to allow third-party devices to ship with SteamOS. Competing handheld PCs and possibly more traditional systems could soon feature "Powered by SteamOS" stickers.