According to Ars Technica, there are many sources which have confirmed that the console is in under development for quite some time now.
While there is no official statement from Valve in this matter. SteamDB operator Pavel Djundik has spotted new hardware-related code in the latest version of Steam pointing towards a device named “SteamPal.”
The report adds that the name is a derivative of a previously discovered code term, “Neptune,” which first appeared in September last year along with a “Neptune Optimized Games” string. However, at the time, it was believed to be some type of controller.
Ars Technica has confirmed that the codename 'SteamPal' means an all-rounder PC with gamepad controls, a pair of joystick, at least one thumb-sized touchpad and a touchscreen.
Taking a page from devices like the Aya Neo, the device will reportedly include an AMD or Intel system-on-a-chip while most likely coming with Linux. At least one prototype is said to be wider than the Nintendo Switch and features the usual assortment of console buttons, triggers, and joysticks.
It will offer a docking solution like the Nintendo Switch via a USB Type-C port, and it’ll be based on Linux. Since the device is still a prototype, we can’t be sure if the production unit will offer all these features or not.
Valve's "Neptune" controller shows up in latest Steam client beta again.
— Pavel Djundik (@thexpaw) May 25, 2021
It's named "SteamPal" (NeptuneName) and it has a "SteamPal Games" (GameList_View_NeptuneGames)
It’s worth noting that this isn’t the first time we’re hearing about Valve’s console plans. Earlier this month, the company’s co-founder Gabe Newell gave a cryptic answer to a question about Valve’s plans for future console video games at a New Zealand school. “You will get a better idea of that by the end of this year…and it won’t be the answer you expect. You’ll say, ‘Ah-ha! Now I get what he was talking about,'” Newell said. It seems like Gabe N. was referring to the “SteamPal” at the time, as it’s also expected to hit the market later this year.