Valve Develops Crucial XR Components, Indicating ‘Deckard’ Standalone May Enter Production

Valve’s upcoming standalone XR headset, informally dubbed ‘Deckard’, has been the subject of speculation ever since it first came up in 2021. Now, fresh insights from tech analyst and VR enthusiast Brad Lynch, known online as ‘SadlyItsBradley’, suggest that Valve might be ramping up production for the much-anticipated gadget.

Although Deckard remains largely shrouded in mystery, the buzz around it hints at a standalone device capable of wirelessly streaming PC VR games, potentially positioning it as a rival to Meta Quest and Apple Vision Pro.

Lynch, who frequently shares insights on XR industry developments, reveals that Valve has reportedly been bringing in “equipment to manufacture VR headset facial interfaces in the USA.” He shared this news on X, adding that the equipment is sourced from Teleray Group, the same company that produced the gaskets for the Valve Index and HP G2 Omnicept.

Given that the Valve Index was launched almost six years ago, it’s unlikely that Valve is still prototyping parts for that aging PC VR headset. This production effort might indeed be focused on their eagerly awaited new entry into the XR market.

It’s not entirely clear if Valve’s decision to manufacture these components in the US is a strategy to dodge the increased tariffs on China recently imposed by the US government.

However, Lynch indicates that Valve is utilizing the same facility in the US that was previously dedicated to making the company’s Lighthouse 2.0 base stations, which they had vacated about two years ago.

“Perhaps they want to use that facility for manufacturing new components during Deckard’s market life, side-stepping tariff challenges,” Lynch speculates. “They could also be prototyping future headset gaskets on-site at Valve, although I suspect they already have the necessary R&D equipment for this.”

Deckard has certainly spurred a range of rumors over the past four years, and the latest reports suggest that Valve is indeed preparing for production, possibly hinting at an upcoming reveal.

In November 2024, some leaked 3D models hidden within a SteamVR update showcased a new VR motion controller, codenamed ‘Roy’. This controller breaks away from the standard VR motion design by featuring a more conventional gamepad-style button layout instead of the commonly used Touch layout. If Valve sticks with this design, it might mean that Deckard will offer a consistent input experience akin to the Steam Deck.

Then in February, notorious leaker and data miner ‘Gabe Follower’ reported that Valve is aiming to release Deckard by the end of 2025, priced at $1,200. Gabe Follower further speculates that despite this hefty price tag, Valve might sell Deckard at a loss. According to him, Deckard will run on a VR-adapted version of the same SteamOS used in the Steam Deck, the company’s handheld gaming device.