Valve’s Steam Machine has been looming over the console market, promising to potentially disrupt the market in a major way. With the backing of one of gaming’s biggest companies and a limitless backlog courtesy of the Steam library, the Steam Machine could prove to be a real game-changer for the console market. It’s reached the point where even juggernauts of the industry like Sony and Nintendo have to keep an eye out for their potential new rival.
The problem is, the sheer cost of the Steam Machine might be a real burden that the company can’t escape. Due to issues outside of their control, the price tag for the console might be a little too much for the average console game. This is likely why the company has been cagey about the price of the console, especially in light of their recent decision to hike the price of the Steam Deck. A potential leak underscores that concern because it highlights just how quickly that price tag could soar — and it could be a real problem for the Steam Machine’s efforts to reorient the market.
The Steam Machine Is Rumored To Be Over A $1000
The Steam Machine was going to be expensive no matter what, but the cost of a single console might actually be in the four digits. Jez Corden, a noted games leaker, has taken to YouTube with the announcement from a “very good source” that the Steam Machine was initially set to have a $1000 price tag. This isn’t all that surprising, given that the Steam Deck’s price tag has also gone up recently. The cause of these price hikes, as they are across the tech industry at large, is largely due to supply shortages.
The influx of AI companies in recent years has resulted in a higher demand for microchips, which in turn has made the standard tech that also utilizes those microchips harder to mass-produce and ship. These shortages, on top of global tariffs and manufacturing delays caused by global instability, mean everything has been getting more expensive. This is especially true in the world of tech, explaining why the Steam Machine’s price tag might have risen. It’s not just them who are dealing with this issue — Nintendo and Sony have also recently confirmed price hikes for their own platforms. Unfortunately for Valve, it might have also made the Steam Machine too expensive to really make a dent in the current console market.
Why Valve Should Be Worried About The Steam Machine’s Price Tag
Image courtesy of Valve
The Steam Machine has the potential to really disrupt the console market. Thanks to the processing power built into the device that puts it on par with gaming computers, along with the massive backlog of games that would be instantly available through Steam, the Steam Machine could become a real challenger to the dominant forces in the industry. While Nintendo and Sony both have enough exclusive titles and established roots in the gamer market, the Steam Machine could really eat into both of their profits — and could be the final nail in the coffin for Xbox, which is still trying to reverse its fortunes.
However, a huge price tag could blunt the impact of the Steam Machine on the industry. By this point, most players who want a console at least have one — and both the PS5 and the Switch 2 cost less than what the Steam Machine is rumored to cost. Part of the appeal of the Steam Machine is to have a platform that can bring the power of gaming PCs to the living room, all for a more reasonable price compared to gaming computers. That’s a major selling point for the new Valve platform, so having a price tag that exceeds anything Sony, Microsoft, or Nintendo has on the market defangs Valve’s console.
More and more players are being more restrained with their purchases amid the rising prices across the economy, making them less likely to dive headfirst into a new console. Conversely, the cost of mass-producing the Steam Machine in this era makes that price tag an inevitability if the company doesn’t want to suffer a major loss in the process. While lowering the price might win more players over and move more consoles, it would also increase the cost affixed to the company.
All the while, players frustrated with rising costs across the board would likely revolt against a Steam Machine that cost too much — just look at the angry response fans have had to the Steam Deck’s recent price ticks. The anticipation and expectation for the Steam Machine is high, but subsequently, so is the risk. If Valve isn’t deliberate with their pricing choices for the Steam Machine, then a potential future game-changer in the industry could have a much tougher time reaching its full potential.
