Valve’s new 2026 hardware trio—Steam Machine, the next-gen Steam Controller, and the Steam Frame VR headset—shows how serious the company is about hardware again. Hidden inside that story is another smart move: using molded pulp packaging for the new Steam Controller, building on experience from the first-generation controller in 2015.

1. The new Steam hardware lineup: Machine, Controller, VR

In November 2025, Valve officially announced three new devices, all scheduled for early 2026:

• Steam Machine (2nd gen) – a compact, console-style gaming PC running SteamOS.
• Steam Controller (2nd gen) – a redesigned controller aimed at both traditional controller games and mouse-style PC games.
• Steam Frame – a standalone/wireless VR headset that runs SteamOS and can stream from a PC or play games natively.

All of them sit under the Steam hardware umbrella on Valve’s official hardware page, alongside Steam Deck.

This is more than “just another product launch”. Valve is building a full ecosystem: handheld, living-room console, and VR—tied together by SteamOS and your Steam library.

And in that ecosystem, packaging suddenly matters a lot: more devices, more global shipments, more pressure to reduce waste and cost while still feeling premium.

2. Valve has history: from Alienware Steam Machines to Steam Link

This isn’t Valve’s first ride on the hardware roller coaster.

Steam Machine with Alienware

The first-generation Steam Machines (launched in 2015) were built with partners like Alienware, packing PC hardware into small console-style boxes running SteamOS.

Those boxes had typical console problems to solve:

• Survive global shipping and warehouse stacking
• Compete on unboxing experience with Xbox and PlayStation
• Keep packaging lean enough to control costs

Exactly the kind of context where molded pulp trays and fiber-based inserts shine.

Steam Link: small box, short life

At the same time, Valve shipped Steam Link, a small streaming box launched in 2015 and discontinued as hardware in 2018, replaced by a software app.

Steam Link is a great reminder: some hardware lines are intentionally short-lived. Using heavy plastic and foam packaging for a product you’ll only make for a few years is pure waste. Fiber-based molded pulp packaging avoids that long-term plastic footprint.

3. 2015 Steam Controller: molded pulp packaging, version 1

The 2015 Steam Controller (first gen) launched alongside the original Steam Machines.

That controller already used a molded pulp insert (often referenced as a PaperFoam-style solution) to cradle the device in a snug, fiber-based tray: the controller on top, with space for the wireless dongle and cable below, all inside a cardboard box.

Key things that setup proved:

• A complex shape like a game controller can be held securely by molded pulp.
• The tray can be made from bio-based, recyclable fibers instead of plastic.
• The insert can still look “designed,” not like a cheap egg carton.

That first-gen Steam Controller quietly showed that molded pulp packaging is perfectly capable of delivering protection and a premium presentation at gaming scale.

The new 2026 Steam Controller is basically “version 2” of that idea: updated hardware on the outside, smarter, more sustainable packaging on the inside.

4. Why molded pulp makes sense for the new Steam Controller

For the 2026 controller, molded pulp packaging is a logical choice—not just a “green” gesture.

Sustainability you can actually see

Modern molded pulp is made from recycled paper, cardboard, or plant fibers such as bagasse or bamboo. It’s:

• Recyclable in standard paper streams
• Often compostable
• Fully plastic-free in many designs

For Valve, that means:

• A controller box that’s mostly just paper and fiber
• Easier compliance with retailer and regional sustainability rules
• A visible, tangible eco story to show on the box and product page

Gamers notice when there’s less plastic and foam in the box. That matters more each year.

Protection and logistics in one piece

Molded pulp has evolved a lot from the “egg carton” days. Properly engineered, it offers:

• Good shock absorption and cushioning
• Precise cavities for complex shapes like controllers
• Consistent dimensions for pallet stacking and automation

For the Steam Controller, that means one insert can:

• Lock the controller in place
• Hold the dongle, cable, and documentation
• Reduce loose components and “rattle” inside the box

Fewer separate pieces make packing faster and reduce the risk of missing parts.

Friendly to automation and high volumes

Valve already showed interest in automated lines for controller packaging in the last decade. Molded trays nest efficiently and are easy for robots to pick and place, which helps:

• Increase line speed
• Cut labor costs
• Reduce packing errors and rework

For a global product like a Steam Controller launching alongside Steam Machine and Steam Frame, those efficiency gains are not optional—they’re part of making the business case work.

A premium unboxing, without plastic

Today’s molded pulp can be:

• Smooth-surfaced rather than rough
• Precisely contoured to the product
• Decorated with debossed logos or subtle geometry

You still get:

• The “hero shot” when the box lid comes off
• A clear hierarchy: controller first, accessories second
• A cohesive brand feel across the Steam hardware family

You just get all of that in fiber instead of plastic.

5. What other brands can learn from Valve

Valve’s 2026 trio is a showcase: if you can ship a global gaming ecosystem with molded pulp inside the box, most brands can absolutely do the same.

Here’s how to adapt that playbook.

Step 1: Pick your “hero” product

Choose one product where:

• Shape is distinctive
• Volume is meaningful
• Customers care about experience

That might be a controller, router, wearable, handheld, or small appliance. This is your “Steam Controller”.

Step 2: Map the plastic and foam

Audit your current box:

• Foam end caps
• Vacuum-formed plastic trays
• Polybags for sub-components

Ask: which of these are only there to “hold and protect”? Those are prime candidates to replace with a single molded pulp insert.

Step 3: Engage a molded pulp expert early

Don’t treat packaging as an afterthought. A specialist like GVPAK can:

• Turn your product CAD into a molded pulp design
• Advise on fiber mix and wall thickness
• Design inserts that work with manual lines now and future automation later
• Optimize for both protection and material use

That’s how you get controller-level precision without overbuilding or overspending.

Step 4: Communicate the change

Make the packaging upgrade part of your story:

• Call out “plastic-free molded pulp insert” on the box
• Show the tray in your product photos and launch content
• Add a simple disposal/recycling message so customers know what to do

People can’t appreciate the shift to molded pulp packaging if they don’t notice it.

6. Call to action: Turn your next launch into a molded pulp success

Valve’s 2015 hardware taught the industry that experimental gaming devices could still feel premium. The 2026 Steam Machine, new Steam Controller, and Steam Frame show something new: sustainability and logistics can be built in from the start, right down to the molded pulp insert.

If you’re working on:

• Consumer electronics
• Smart home devices
• Beauty or personal care hardware
• Small appliances or IoT products

…this is your moment to modernize your packaging.

Explore custom molded pulp packaging solutions at gvpak.com.

GVPAK can help you:

• Replace plastic and foam with fiber-based molded pulp
• Design inserts that protect, present, and automate cleanly
• Launch packaging that matches the quality of your product—without the environmental baggage

Valve just reminded the gaming world that packaging is part of the product. Your brand can send the same message, starting with your next molded pulp project.