Valve’s new Steam Machine, announced earlier this month, created considerable excitement in the gaming world. Many tech enthusiasts assumed this move was aimed directly at the console market, targeting PlayStation or Xbox users. However, new information suggests things won’t be as expected. The biggest obstacle to this competition appears to be the device’s pricing.
High price warning for the Steam Machine: It may not be a console killer
Initially, there were strong predictions that Valve would subsidize the hardware, meaning it would sell at cost or at a loss. Giants like Sony and Microsoft typically adopt a model of losing money on console sales and deriving their primary profit from games and accessories. While Valve has the power to implement this strategy with its 30% share of the Steam store and products like the new Steam Controller and Virtual Reality headset, the company’s plans aren’t moving in that direction.
The first serious hint came when Valve’s Hardware Engineer Yazan Aldehayyat stated that pricing would be competitive with a home-built PC. Software engineer Pierre-Loup Griffais later responded to a question from YouTuber SkillUp, emphatically confirming that the device would not be subsidized. Griffais stated that their goal is not to lose market share and that the price will be in line with current PC market standards.
Valve officials maintain that the device’s performance level will still represent a good deal. They particularly highlight features that are difficult to find when building your own gaming PC. The ultra-compact chassis, impressively quiet design, and integration features like HDMI CEC are highlighted. Furthermore, a custom four-antenna Bluetooth design aims to provide a seamless wireless experience with four controllers simultaneously.
Given the lack of subsidies and potential RAM price increases from Samsung, the new Steam Machine is expected to cost between $800 and $900. While it boasts powerful specifications like a semi-custom AMD Zen 4 processor, RDNA 3 graphics, and 16GB of DDR5 memory, this price tag may be difficult to attract console users. It’s a matter of curiosity how Valve will manage to sell the PlayStation 5, especially now that it’s much more affordable.
Do you think Valve’s high pricing will be enough to attract console users to PC gaming, or will the device appeal only to a niche audience?
