Production Begins on Most Anticipated VR Headset
Valve’s long-rumored next-generation VR headset has reportedly entered mass production, according to Chinese analyst group XR Research Institute, as reported by UploadVR on October 8, 2025. The headset, internally codenamed Deckard and likely to launch as Steam Frame, is estimated to produce between 400,000 and 600,000 units annually with shipments beginning before the end of 2025. This represents the first concrete evidence that Valve’s successor to the Index is moving beyond development into actual manufacturing.
The production scale places Steam Frame in premium territory alongside Apple Vision Pro, which manufactures around 400,000 units annually, rather than mass-market products like Meta Quest 3, which ships millions. This suggests Valve is positioning their new headset as a high-end enthusiast device rather than competing directly with Meta’s affordable offerings. At a rumored price of approximately $1,200, the Steam Frame targets hardcore PC VR gamers willing to pay premium prices for cutting-edge hardware.
Steam Frame – The Official Name?
While the headset has been known by its Deckard codename for years, recent evidence strongly suggests the official product name will be Steam Frame. In September 2025, Valve filed a trademark application for the term Steam Frame with the United States Patent and Trademark Office. Shortly after, VR leaker SadlyItsBradley discovered that Valve rebranded SteamVR Overlays to Frames throughout the software’s codebase.
The name makes strategic sense. Just as Steam Deck references the platform while describing the product form factor, Steam Frame communicates that this is a Valve gaming device while using VR terminology that describes the physical frame worn on your head. The branding also aligns with Valve’s recent pattern of creating hardware that extends the Steam ecosystem beyond traditional desktop gaming.
| Specification | Details |
|---|---|
| Codename | Deckard |
| Likely Product Name | Steam Frame |
| Estimated Price | $1,200 |
| Annual Production | 400,000-600,000 units |
| Expected Launch | Late 2025 |
| Operating System | SteamOS (customized for VR) |
| Controllers | Roy (gamepad-style layout) |
Hybrid Standalone and PC VR Device
Unlike the tethered-only Valve Index, Steam Frame is expected to function as a hybrid headset with both standalone capabilities and PC VR connectivity. The device will run a customized version of SteamOS, the Linux-based operating system that powers Steam Deck. This means users can play certain games directly on the headset without a PC connection, similar to Meta Quest’s standalone functionality.
However, the headset’s true power comes when connected to a gaming PC. Valve is reportedly developing a dedicated USB dongle for wireless PC VR streaming that works without requiring a router, eliminating latency and connection issues that plague current wireless solutions. The headset will also support wired connection via DisplayPort or HDMI for users who want the absolute highest visual fidelity without compression.
This hybrid approach gives Steam Frame advantages over purely standalone headsets like Quest 3 and purely tethered devices like PlayStation VR2. Users get the convenience of standalone gaming for simpler experiences while maintaining access to the full graphical power of PC VR for demanding titles. The ability to play Steam Deck games on a giant virtual screen in VR without needing a PC is a particularly clever feature that extends the headset’s utility beyond traditional VR gaming.
Expected Technical Specifications
- Resolution of at least 1440p per eye
- 120Hz refresh rate (possibly higher)
- Micro-OLED or high-density LCD displays
- Pancake or aspheric lenses for improved clarity
- Eye tracking for foveated rendering
- Inside-out tracking via cameras (no base stations required)
- High-resolution passthrough cameras for mixed reality
- Open-ear audio similar to Valve Index
- Optional compatibility with Lighthouse base stations
The Roy Controllers – A Gamepad Approach
Steam Frame will launch with new controllers codenamed Roy, which leaked through SteamVR code late last year. Unlike traditional VR controllers with their distinctive tracking rings, the Roy controllers resemble Touch controllers from Meta with ring-free designs that rely on camera-based tracking from the headset itself.
What makes Roy controllers unique is their gamepad-inspired button layout. Rather than the typical two action buttons per controller, Roy features a full directional pad on the left controller and four action buttons arranged in a diamond on the right, plus standard start and select buttons. This design provides better compatibility with traditional gaming experiences that weren’t designed specifically for VR motion controls.
According to VR leaker Brad Lynch, who examined the controller models in SteamVR before Valve removed them, every button features capacitive touch for hand skeleton tracking. The controllers will also work in conjunction with the headset’s eye tracking for UI navigation, meaning users won’t always need controllers for menu interaction. This combination of traditional gamepad layout with advanced hand tracking represents Valve attempting to bridge hardcore gaming with modern VR interaction paradigms.
Production Scale and Market Positioning
The 400,000 to 600,000 annual production estimate provides insight into Valve’s market expectations. For comparison, Meta Quest 2 sold over 20 million units during its lifetime, while 2.5 million people have completed the Quest 3 introductory experience after two years. Apple Vision Pro manufactures around 400,000 units annually at its $3,499 price point.
Steam Deck, Valve’s previous hardware launch, sold approximately 5 million units after almost four years on the market. Given Steam Frame’s higher price point and more niche appeal compared to a portable gaming PC, targeting production between Steam Deck and Vision Pro makes strategic sense. Valve isn’t trying to compete with Meta’s mass-market approach but rather serving the PC VR enthusiast community that values quality over affordability.
Multiple sources indicate Valve plans to sell Steam Frame at a loss despite the $1,200 price tag, similar to their strategy with Steam Deck. This suggests the company views VR hardware as a way to expand the Steam ecosystem and drive software sales rather than profiting from hardware margins. The package will reportedly include several in-house Valve games or demos that are already completed, providing immediate value beyond third-party content.
Years of Development Finally Coming to Fruition
Valve has been working on Deckard for at least four years, with references first appearing in SteamVR code back in 2021. Over this time, the company has repeatedly confirmed development of a new headset while dropping hints about its wireless PC streaming focus. The lengthy development cycle reflects Valve’s perfectionist approach to hardware – they’d rather take years perfecting a product than rush something inferior to market.
In April 2025, VR insider SadlyItsBradley discovered that Valve had been importing equipment to manufacture VR headset facial interfaces in the United States. The equipment came from Teleray Group, the same manufacturer that produced face gaskets for Valve Index and HP Reverb G2 Omnicept. This suggested Deckard was moving from prototypes into actual production preparation.
Stan Larroque, founder of French VR startup Lynx, claimed in May 2025 that he’d seen Deckard and called the design quite amazing. He noted that the VR hardware industry is small enough that companies share suppliers for some components, which is how he gained knowledge of Valve’s project. Interestingly, Larroque predicted a 2026 launch rather than late 2025, though he may have been referring to international availability versus initial US launch.
Why Now for Valve’s VR Return
Valve’s timing makes sense given the current VR landscape. The original Valve Index launched in June 2019 at $999 and represented the gold standard for PC VR despite its tethered-only design and requirement for external base station tracking. Six years later, the Index remains viable but has been surpassed technologically by newer headsets with pancake lenses, higher resolutions, and inside-out tracking.
Meta Quest 3 launched in late 2023 with impressive standalone capabilities and decent PC VR streaming, capturing the mainstream VR market. Apple Vision Pro arrived in early 2024 targeting the ultra-premium spatial computing segment. This leaves a gap for a device that combines high-end PC VR performance with modern conveniences like wireless streaming and inside-out tracking – exactly what Steam Frame promises to deliver.
Additionally, Valve’s success with Steam Deck proved the company can manufacture and support consumer hardware at scale beyond their initial Index experiment. The infrastructure, supply chains, and customer support systems developed for Steam Deck directly benefit Steam Frame’s production and launch.
The Half-Life Connection
Speculation about Valve software to accompany Steam Frame centers on Half-Life. Half-Life: Alyx launched in March 2020 as Valve’s flagship VR title for Index and remains widely regarded as the pinnacle of VR gaming. References to a project codenamed HLX have appeared in code leaks, with evidence suggesting this game has integrated FSR3 (AMD’s FidelityFX Super Resolution upscaling technology).
Whether HLX represents Half-Life 3, Half-Life: Alyx 2, or something entirely different remains unknown. However, Valve launching new VR hardware without compelling software would contradict their historical approach. They created Half-Life: Alyx specifically to showcase Index’s capabilities, so bundling Steam Frame with groundbreaking VR software makes perfect sense.
Community Response – Cautious Optimism
The VR enthusiast community has reacted to the mass production news with excitement tempered by Valve Time skepticism. Reddit discussions acknowledge that Valve has confirmed working on new VR hardware for years, making this leak more credible than typical industry rumors. The production numbers from a Chinese analyst group provide concrete evidence of manufacturing preparation rather than just hopeful speculation.
However, Valve’s reputation for delays means even a late 2025 target could slip to 2026. Steam Deck was announced in July 2021 for a December launch but delayed to February 2022, and even then, many pre-orders weren’t fulfilled until months later due to production constraints. VR hardware involves more complex manufacturing than gaming handhelds, so delays seem probable despite current production timelines.
The $1,200 price point generates mixed feelings. Hardcore PC VR enthusiasts who remember spending $1,000 on the original Index view this as reasonable for cutting-edge hardware. Others worry that price excludes the mainstream audience needed to build a healthy VR software ecosystem. Valve’s apparent decision to subsidize the price by selling at a loss suggests they understand this tension.
What Happens Next
With mass production reportedly underway and a 2025 launch target, an official announcement should come soon. Valve typically reveals hardware several months before launch to build anticipation and allow pre-orders. Given we’re now in October 2025, a reveal event in the next 4-6 weeks followed by holiday season availability seems plausible.
The Game Awards in early December would provide a perfect stage for Valve to showcase Steam Frame alongside any accompanying software like the mysterious HLX project. Alternatively, Valve could hold their own dedicated announcement event as they did with Steam Deck. Either way, if the Chinese analyst group’s information is accurate, the wait for Valve’s next VR headset is finally nearing its end.
FAQs
When will Valve’s new VR headset release?
According to Chinese analyst group XR Research Institute, Valve’s Steam Frame VR headset has entered mass production for a late 2025 release. No official announcement from Valve has confirmed this timing.
What is the Valve Deckard headset called?
Deckard is the internal codename. The headset will likely launch as Steam Frame based on recent trademark filings and SteamVR code changes.
How much will Steam Frame cost?
Multiple leakers report the Steam Frame will cost approximately $1,200 for the complete package including controllers. Valve reportedly plans to sell it at a loss despite this premium price.
Is Steam Frame standalone or does it need a PC?
Steam Frame will function as a hybrid device that works both standalone running SteamOS and as a PC VR headset via wireless or wired connection. Users can play some games without a PC or connect to gaming PCs for demanding titles.
How many Steam Frame headsets will Valve produce?
XR Research Institute estimates annual production of 400,000 to 600,000 units, similar to Apple Vision Pro’s manufacturing scale and positioning it as a premium enthusiast device.
What are the Roy controllers?
Roy is the codename for Steam Frame’s new controllers, which feature a gamepad-inspired button layout with d-pad and four action buttons rather than typical VR controller designs.
Will Steam Frame work with Valve Index base stations?
The headset will support optional compatibility with Lighthouse base stations but won’t require them. It features inside-out tracking via cameras as the primary tracking method.
Will there be new Valve games for Steam Frame?
Multiple sources report that Valve will bundle in-house games or demos with Steam Frame. Code references suggest a project called HLX may be in development, potentially Half-Life related.
Conclusion
The report that Valve’s Steam Frame has entered mass production represents the most concrete evidence yet that the company’s long-awaited VR headset successor to Index is real and imminent. After four years of development, countless code leaks, and repeated confirmations from Valve that a new headset was in progress, production of 400,000 to 600,000 units signals the device is moving from vaporware to actual hardware launching before 2026. The $1,200 price point positions Steam Frame firmly in premium territory alongside Apple Vision Pro rather than competing with Meta’s mass-market Quest lineup, but Valve’s strategy of selling at a loss and bundling completed games suggests they understand the need to provide value beyond raw specifications. The hybrid standalone and PC VR functionality, combined with innovative Roy controllers featuring gamepad layouts, represents Valve attempting to bridge hardcore PC gaming with modern VR convenience. Whether Steam Frame can recapture the enthusiasm that greeted the original Index launch in 2019 depends largely on what software accompanies it and whether production can actually deliver units before year’s end. If the Chinese analyst group’s information proves accurate, the VR community’s years-long wait for Valve’s next headset is finally reaching its conclusion, with official announcements likely just weeks away.