Everyone’s been trying to guess how much Valve’s Steam Machine will actually cost. Since people keep comparing it to the Xbox and PlayStation and calling it a mix of a PC and a console, most people assumed it would be priced more like a console than a custom PC.
Turns out those assumptions were off. In a chat with Skill Up, Valve engineer Pierre-Loup Griffais was asked if Valve might subsidize the hardware the way console makers often do, and he made it clear that’s not happening.
When asked whether Valve would consider selling the Steam Machine at a loss to boost its market position, Griffais offered a firm rejection. He added that the system’s pricing would be set in line with what buyers typically encounter in the current PC market.
This approach mirrors the standard PC business model, where hardware is profitable from the start. Griffais noted, however, that the value extends beyond the components themselves, emphasizing that the engineering behind the system delivers performance and features that aren’t easily replicated in a DIY build.
He mentioned things like the small size, how quiet the machine runs, and handy built-in features like HDMI-CEC. He also talked about the wireless and Bluetooth setup, including a four-antenna design made specifically to keep multiple controllers connected smoothly, details that make the whole system feel more polished than a simple list of parts suggests.
This is very different from the strategy used in the console market. Companies such as Sony and Microsoft often sell hardware with thin margins because they make up the difference through game sales, licensing fees, subscriptions, and accessories. The long-term revenue per customer is much higher than the cost of the console, so lower initial pricing helps them grow a larger install base.
Valve does not appear to be taking the same approach. The Steam Machine’s pricing is expected to align closely with the cost of equivalent PC components. A recent Reddit community estimate for a similar build came in at around $770.
The estimate is complicated by the continuing global memory shortage. Demand from AI companies has pushed DRAM prices sharply higher, particularly for components like DDR5. There are also reports that NVIDIA and AMD may discontinue some lower-end graphics cards due to supply pressure. With system builders already stockpiling memory, the market could tighten further before the Steam Machine launches, potentially raising its effective price to $800 or more.
This context sheds light on Valve’s statements about the device’s 8GB GPU. According to the company, even though some may view the VRAM capacity as limited, the architecture still delivers performance above roughly 70 percent of current gaming PCs. It’s a central point in their justification for the system’s value at full price.
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