Valve Corporation’s recently announced Steam Machine is expected to launch at a price higher than that of the current-gen consoles.
According to content creator Linus Tech Tips, those hoping for the Steam Machine to have a console-like price may need to temper their expectations. In a recent video, Linus praised the hardware’s engineering ambition while expressing disappointment that Valve won’t subsidize the device like a traditional console. The company told him that the system will be “priced like a PC rather than like a console,” meaning potential buyers should anticipate a higher upfront cost compared to a current-gen PlayStation or Xbox.
Linus said Valve hinted that subsidizing the hardware simply isn’t viable, noting that the Steam Machine is a “full-fledged PC” and could lead to, say, a corporate purchase in bulk without generating any game sales. As a result, there is a need for the company to protect the sustainability of its hardware business.
Daniel Ahmad, Director of Research and Insights at Niko Partners, took to Twitter/X to offer some further insight into Linus’ information regarding the Steam Machine’s pricing. He began by sharing an image that read, “Please don’t say dammmn… when you hear the price”. According to the analyst, tariffs, surging memory/storage costs, supply chain volatility and an inability to subsidize to the same extent as traditional console manufacturers are all working against Valve at the moment. That said, he believes the the specs suggest that Valve originally wanted the Steam Machine to be in line with the PS5’s pricing.
Responding to a question regarding Valve’s inability to subsidize to the same extent as a traditional console despite the company’s financial success, Ahmad said that console makers such as Sony Interactive Entertainment have “significantly more levers [they] can pull when it comes to things like recurrent revenue (paid online), closed ecosystem, large production/retail scale, and an entire business built around console distribution to begin with.”
During a recent interview, Valve engineer Yazan Aldehayyat claimed that the Steam Machine is equal to or better than around 70% of “what people have at home.” Read about it here.
