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Valve has been trying for years to find its place in the gaming hardware market. After the success of the Steam Deck, the company is reportedly working on a new Steam Machine, which is a compact gaming computer based on the SteamOS system. The problem is that even before the official presentation, concerns about the device's price are arising. Recent price increases for the Steam Deck OLED show that the manufacturer is not immune to rising costs of memory and data storage. If a similar trend affects the Steam Machine, the new hardware may turn out to be significantly more expensive than the consoles from Sony and Microsoft. This raises questions about its chances of success.
Price may exceed 1000 dollars
According to well-known informant Brad Lynch, the initial estimates for the price of the Steam Machine are higher than those for the Steam Deck. The specific amount has not been revealed, but speculations circulating online suggest it could be as high as 1200 dollars. In comparison, the PlayStation 5 currently costs around 650 dollars, and the PlayStation 5 Pro around 900 dollars. This would mean that Valve's new hardware would be significantly more expensive than both consoles. In such a situation, the mere presence of the Steam platform and its vast library of games may not be enough to persuade the mass market.
Valve doesn't have the advantage that Sony and Microsoft possess
The biggest challenge for Valve may be its business model. Sony and Microsoft can sell consoles with minimal margins or even below production costs, as they later make money from subscriptions, services, and game sales. Valve doesn't have an equivalent of PlayStation Plus or Game Pass. Of course, the company makes money from game sales on Steam, but it doesn't have as developed an ecosystem of subscription services. If it doesn't decide to subsidise the hardware, the Steam Machine may turn out to be a product aimed mainly at PC enthusiasts rather than a broader console market.
If the leaks are confirmed, the Steam Machine could be one of the most expensive gaming devices available on the market. For PC fans, this may not necessarily be a problem, but in the face of the PlayStation 5 or Xbox, the high price could prove to be the biggest hurdle for Valve's new hardware.
source; digitaltrends
