Why the Steam Machine won't be a failure even if its price is like "that of a PC with similar hardware"

  • It is rumored that the Steam Machine will be priced like a PC with similar hardware.
  • Some say it will die before it is born.
  • Valve's strategy is not just about selling hardware.

Price of the Steam Machine

La Steam Machine (2, or the new version) was announced on November 12th, and they still haven't announced its price. We, or specifically I, We think it will be around €800However, online comments suggest it could be released for $400 or even less. These users argue that at that price it would have a significant impact, but if it cost more it would be another flop, like the original Machines from over 10 years ago.

The first thing to consider is what Valve expects from launching the Steam Machines: Gabe's company He doesn't think about selling a lot of devices to generate profits.What they're thinking is more about offering a simple alternative so more users can play games on their platform, and that's where they can make a profit. Of course, this would mean they'd have to sell them very cheaply, but selling them as cheap as people would like is virtually impossible.

Steam Machine at cost price

Valve is already selling the Steam Deck at cost. It's expected they'll do something similar with the Steam Machine, but that price is far from the $400 or even less that's being mentioned online. Why isn't it viable to operate at such a high loss? Because people would find out, they'd buy a "powerful PC" for €400, install Windows on it, and use it as a cheap desktop PC. If the price of the parts and assembly is about $750, they would lose $350 on each unit of this type..

If they sell at cost, people can get the same equipment and turn it into a normal PC if they want, but that move doesn't affect the company at all: it costs them X and they charge X. loss = 0.

Why it still makes sense

It's fine for people to have their opinions, and even to claim that Steam Machines are doomed from the start because of their €600+ price tag, but I don't entirely agree. The reason is simple: according to Valve's comments, the Steam Machine It will be competitively priced when compared to a PC with similar specifications.If we consider that it will cost the same or a little less, is already assembled and can be expanded in the future, it makes sense for at least one type of user.

Once again, I'm going to talk about myself and my point of view: I've been thinking about building a gaming PC for a while now, but doing so requires some knowledge of hardware, compatibility, and the desire and time. If someone tells me that for €750—or whatever the price—I can get the same thing Valve offers with more control because I'm building it myself, or I can choose a pre-built option, I prefer the pre-built one with official support. Everything plug'n'play.

The Size is also important in this case.I don't have anywhere to put a normal-sized tower where I usually play. If I build it myself, I lose the assembly time, the peace of mind that everything will work, the space... and probably some money, since, however small the price, Valve will negotiate with hardware manufacturers to get the components for a bit less.

We'll have to see the pros and cons.

Once the price is announced, I'll have to make a final assessment. For me, a price "like that of a similar PC" could be a deal-breaker, and I might decide not to buy anything. Or I might think that not overthinking it is worth it.

But the Steam Machine will not be the failure that many predict, because:

  1. Valve does not expect to profit from Machines sales.
  2. Some of us are looking for a basic PC and don't want to overthink it.
  3. The price will almost certainly be lower than if we do it ourselves, even if only slightly.

That price might lead to lower sales, but that doesn't matter much because the arrival of the Steam Machine will encourage other manufacturers to create their own "Steam Machines," and Valve will continue to profit. If Gabe makes more money, the Steam Machine can't be considered a failure by any means. Sales figures, feelings, and criticisms aside.