A report from the BBC today sheds a bit of light on Nvidia's next handheld gaming system. The new gaming device, which sounds a lot like the Nvidia Shield Tablet we've been hearing about lately, will be able to play both Android and high-end PC games according to the write-up.

The latter would likely be accomplished by linking the device to a higher-end GPU inside a desktop PC, similar to how the existing Shield functions. It'll use the GeForce Experience companion application for Nvidia graphics cards to help pull this off, we're told.

As we've heard before, the guts of the machine are said to include a Tegra K1 SoC.

The report claims Nvidia is also planning to offer a budget-priced controller as a separate add-on which suggests we're looking at something a bit different than the company's first portable system.

If everything in the report comes to fruition, Nvidia's solution could pose a serious threat to Valve's plans for living room domination - especially if they are able to get it to market this year. An Nvidia spokesperson declined to confirm details of the device but did say they have an "awesome new gaming product" launching soon.

The Steam Machine initiative will see a host of third parties build custom gaming PCs to rival traditional game consoles. Unfortunately for Valve and gamers, the launch window was recently pushed back to 2015 citing further tweaks that need to be made to the Steam Controller.