1. I would be surprised if a Valve-made console had a discrete GPU in this current GPU market. Part of what helped the Steam Deck succeed was that it was an integrated GPU. The Steam Deck was able to be sold at presumably a low margin (maybe even at a loss), and Valve expects to profit from the games purchased on Steam. If they were to sell a pre-buikt PC at close to cost, people would scalp the GPU's for profit and Valve would probably lose out on that predicted Steam revenue.

That does not entirely dismiss this news though. Could be that the 7600 reported here is a temporary workaround for them to test the CPU while the GPU (or even just the drivers) are being worked on. Or maybe for them to do comparison testing easily. I'm just saying I would not expect to see a 7600 in the final product.

2. There is a huge gap in the market right now. The Switch 2 starts at $450, the PS5 slim is going up to $500. The Xbox Series S is woefully underpowered and holding the entire Xbox platform back while costing $380. There are no more $200-$300 console options, unless you want to go with something janky like a mini PC or a cheap Chinese handheld. And like, yes inflation is a thing, but it's not THAT bad. I was able to buy a PS4 slim bundled with 3 AAA Sony games in 2019 for $199.99. Plug that into an inflation calculator and I get ~$250.

Imagine Valve releases a home console for $300. I think it would have to be slightly more powerful than the Deck, to be able to target AAA games releasing over the next 5 years with 1080p 30 FPS. (And for anyone complaint about how "unplayable" that is, go buy a $600 console or $2000 PC instead. This theoretical product is not for you). What I'm not sure if is whether that would be feasible. Can we shave $100 off the Deck by consolizing it? No screen, no battery, probably of design restrictions revolving around it being portable and dust/water resistant could go away and bring the costs down. Plus general performance gains AMD has made since 2022. If Valve could do something like that they could potentially push Microsoft out of the hardware market (they have been rumored to be considering that for a while anyways).

Maybe I'm wrong. Maybe in tough economic times, the ultimate answer is that most people just don't have the disposable income for videogames, so it makes more sense to downsize and focus on the premium high-end market where the volune is lower and the margins are higher. But this rumor is giving me a little bit of hope.