Steam's most recent client beta code revealed something called the "SteamPal," and signs point to it being a possible upcoming handheld console made by Valve, SteamDB's founder reported.
Valve's distribution client already has a "handheld version," allowing players' current games library to be played on a phone, given that the game is compatible with the mobile device. The Steam Link app allows mobile devices to both operate as a controller when playing Steam games via PC or playing those games on mobile devices after installation and pairing the mobile device and PC together. Keep in mind that while not all games have been optimized for remote play via Steam Link, the entire games library is available, it's simply whether or not the mobile device can handle it.
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But the SteamPal would be an entirely new games console if the rumors are correct. SteamDB founder Pavel Djundik took a peek into the new code provided by the Steam client's latest update. In this update, multiple references to SteamPal were made, sometimes in phrases such as "SteamPal Games," where it followed a line of code reading "GameList_View_NeptuneGames," likely alluding to the Steam games library appearing on another device.
This is the second time that the keyword "Neptune" has appeared in the Steam client's code. It first appeared in an update back in September, Djundik reports, and he says he has a feeling that the many hints given via code relate back to whatever Neptune is. It would be interesting to see a console named a Neptune, as Sega's canceled project from the 90s shared the same name.
Djundik also points out something called the "Callisto Developer Program" in the lines of code. This could be some kind of dev kit to get games optimized for Steam's possible handheld console the same way some games have been optimized for the Steam Link mobile app.
Some commenters believe these references are for a new Steam Controller, citing a patent after the original Steam Controller was discontinued in 2019. This could point in the direction of a Valve Index 2 as well, as rumors regarding it have been circulating since last year.
Interestingly, Valve's president, Gabe Newell, held a Q&A session in a public school earlier this month. When asked if Steam would be putting its games onto consoles, Newell responded that players would "get a better idea of that by the end of this year." So whatever Valve's plans are regarding a Steam handheld console, whether that's SteamPal, Neptune, or something else, fans may find out in as soon as a few months.