Valve would like to reduce the price of the Steam Machine, but the timing is particularly unfortunate.
The gaming behemoth attributes the persistent shortage of components as the reason for its console-PC hybrid reaching a four-figure price point.
When Valve announced the Steam Machine's starting price of $1,049, the response was nearly unanimous: the hardware seems impressive, but the cost is steep. The company has now confirmed what many gamers suspected all along: it never intended for the Steam Machine to be this expensive.
Valve states that the Steam Machine's price was not meant to be this high
In an interview with Digital Foundry, Valve engineers Pierre-Loup Griffais and Yazan Aldehayyat expressed that the company would love to reduce the Steam Machine's price, but the current component market makes it impossible.
“There’s no reason for us to maintain a high price for our hardware,” Griffais explained to Digital Foundry. “It’s supposed to foster a stronger bond between players and their games… the lower the price, the better.”
Sadly, this ambition has run into the harsh reality of the market. Aldehayyat noted that Valve is not hopeful that prices for memory and storage will stabilize soon. “We would love to make the Steam Machine more affordable and accessible to a broader audience, but I can’t guarantee that will happen soon,” he mentioned. “I wouldn’t say this issue will resolve itself anytime shortly.”
Valve's statements align with what has been discussed since the launch. The Steam Machine is not overpriced because Valve chose for it to be so; instead, it's a high-end gaming PC that launched at a time when PC component prices were particularly unfavorable. With AI companies purchasing vast amounts of high-performance memory and storage, manufacturers have repeatedly warned that prices are likely to stay high for the foreseeable future.
The Steam Machine debuted during an unfortunate period
Interestingly, none of this impacts the Steam Machine itself. Reviews have consistently praised its high-quality design, quiet operation, and arguably the best console-like PC experience currently available, thanks to SteamOS. The primary criticism has always been its price, and Valve acknowledges this shared frustration.
Unfortunately, it seems that relief is not on the horizon. The wider hardware sector continues to grapple with rising component costs, and Valve is not the only one under pressure. Recently, both Apple and Xbox announced new price increases across parts of their hardware lines, underscoring the notion that premium components are unlikely to become more affordable anytime soon. Thus, while Valve still aims to create the affordable Steam Machine it initially envisioned, that aspiration may remain unfulfilled for a while longer due to the ongoing component shortages.
Don’t relax just yet. Apple and Microsoft are not finished with their price increases.
Recent price hikes for Xbox and Apple devices may serve as a warning for the broader tech industry.
Earlier today, Microsoft increased the prices of its Xbox consoles by up to $150 in the U.S. Just hours prior, Apple announced similar increases for its Mac and iPad lineup, alongside raising the price of its Vision Pro headset and several other products—excluding the iPhone. However, these two tech giants appear poised to continue their trend of price hikes.
While neither company has explicitly indicated that further price increases are on the way, their statements imply otherwise. For instance, this remark from Apple shared with The Washington Post earlier today suggests so.
As the price of Xbox consoles rises, Microsoft introduces a Buy Now, Pay Later option.
The Buy Now, Pay Later scheme available on the Microsoft Store applies to both new and refurbished Xbox Series S and X models.
Microsoft recently announced a price increase for Xbox consoles in the U.S., as the company navigates an unprecedented crisis in the industry. The price for the 512 GB models has risen by $100, and those interested in purchasing the 1 TB models can expect to pay $150 more than the current prices. Furthermore, Microsoft is discontinuing the 2 TB storage model, which isn’t surprising given the circumstances.
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Valve would like to reduce the price of the Steam Machine, but the timing is particularly unfortunate.
Valve has stated that it still intends to produce a more affordable Steam Machine; however, due to increasing component costs, gamers should not anticipate its release in the near future.