The original Steam Deck, announced in mid-2021, marked a major step forward in handheld gaming. It offered a powerful and affordable device that could run complex games at playable frame rates, making it a popular choice among gamers. The first model launched in February 2022, and a newer version with an OLED screen, called the Steam Deck OLED, came out in November 2023. This newer model had a better screen, higher refresh rate, and improved battery life. However, compared to other handheld gaming devices now on the market, the Steam Deck is seen as less powerful. Many of its competitors now offer Full HD (1080p) displays and more advanced hardware, such as AMD Ryzen Z1/Z2 or Intel Arc G3 processors. To stay competitive, the upcoming Steam Deck 2 would need a 120Hz Full HD (1080p) OLED display as standard. This is because most of its main rivals, like the Asus ROG Ally and Lenovo Legion Go, launched in 2023 with 120Hz and 144Hz displays, respectively. The current Steam Deck models have a native resolution of 1280 x 720p with a 60Hz or 90Hz refresh rate, which is now considered outdated in a market that has moved to higher performance standards. In terms of hardware, the Steam Deck 2 would need a more powerful processor to match the competition. The recently released Steam Machine uses a semi-custom AMD APU with a six-core Zen 4 CPU and an RDNA 3 GPU with 28 Compute Units and 8GB of GDDR6 VRAM. While the Steam Deck 2 may not match this level of performance due to power limitations, it could still offer a significant improvement over the current models. The price of the Steam Deck 2 should also be kept below $1,000 / £1,000 / AU$2,000 for its base and mid-range models. The original Steam Deck was sold at a loss to promote PC gaming, but rising component costs have made the newer models more expensive. Valve would need to keep prices lower than its competitors to remain competitive. Ergonomics and control mechanisms are also important for the Steam Deck 2. The current models use standard potentiometers for their analog sticks, which can degrade over time. Modern controllers, such as the Scuf Envision Pro 2 and Scuf Omega, use TMR (Tunnelling Magnetoresistance) sticks and mechanical buttons, offering better sensitivity, accuracy, and durability. Additionally, the Steam Deck 2 would need a larger and more efficient battery to provide longer playtimes. The original model had a 40 Wh battery, while the OLED version improved this to 50 Wh. Competitors like the Asus ROG Ally X offer an 80 Wh battery, allowing for up to six hours of gameplay. A larger battery would improve the user experience, enabling longer sessions without needing to recharge.