Valve’s Steam Machine: PC First, Console Second
Valve has confirmed that its upcoming Steam Machine will be priced like a normal PC and not like a heavily subsidised games console. That single decision is already kicking off a big debate in the PC gaming world.
Unlike traditional consoles from Sony or Microsoft, which are often sold at a loss and recoup that money through game and subscription sales, Valve says it does not plan to sell the Steam Machine at a loss. In other words, do not expect a console style bargain box that secretly costs more to make than you pay.
The Steam Machine is described as a compact living room gaming PC. Inside, it uses standard PC components rather than console specific hardware. That means it behaves a lot more like a regular computer than a locked down console, and that is a huge part of why Valve is taking a different approach to pricing.
Why Not Sell It At A Loss Like A Console?
Michael Douse, publishing director at Larian Studios, the team behind Baldur’s Gate 3, thinks Valve might be leaving money on the table by refusing to subsidise the hardware. He argued on social media that the Steam storefront is basically a money printing machine, and that Valve could easily make back something like a 200 dollar loss per unit in game sales over time.
The logic is simple and it mirrors how consoles work:
- Sell the hardware cheaper than it costs to make.
- Lock users into your ecosystem for years.
- Earn the money back through game sales, DLC and services.
On paper, the Steam Machine looks like the perfect candidate for this model. It is designed to sit under the TV, run Steam, and act like a console that taps into the massive existing PC library. So why not take the hit up front and dominate the living room?
The problem is that the Steam Machine is not actually locked to Steam at all. It may ship with Valve’s software and interface, but under the hood it is just a PC. That means users can very likely install a different operating system, ignore Steam completely, and use the box as a cheap general purpose computer.
If Valve sold the Steam Machine at a big loss, it would be inviting several issues:
- Some buyers would treat it as a discounted small form factor PC, not a Steam gaming machine.
- Businesses might buy them in bulk for office workstations if they are cheaper than regular desktops.
- Enthusiasts could repurpose them as home servers, media boxes, or general Linux rigs without touching Steam.
In all of those scenarios, Valve would eat the loss on hardware and get nothing back through game sales or subscriptions. Unlike a locked console that always routes you through the same store, a fully open PC platform makes subsidising much riskier.
Valve’s Different Strategy For Hardware
This whole discussion also highlights that Valve does not behave like a normal console maker. Consoles are built around massive global scale. Sony and Microsoft are targeting hundreds of millions of players and building networks, cloud services, and subscription models to keep them spending for years.
Valve, by contrast, already runs the dominant PC game store. Steam is huge and incredibly profitable, and Valve does not seem desperate to force even more growth through aggressive hardware subsidies. The company appears comfortable with its platform and is more cautious when it comes to jumping into the console style arms race.
There is also the hardware business itself. If Valve chose to sell the Steam Machine at a big loss, it would need large volumes to make that gamble pay off. That means ramping up manufacturing, logistics, support and marketing to console level scale. Valve may simply not want to run a gigantic global hardware operation the way Sony or Microsoft do.
Instead, Valve might be aiming for something more modest:
- A compact, living room friendly PC that feels console like.
- Pricing that is reasonable compared to a DIY PC with similar performance.
- No reliance on loss making hardware or aggressive lock in tactics.
- A niche but solid audience of PC gamers who want a Steam focused living room device.
If that is the goal, then refusing to subsidise the Steam Machine makes a lot more sense. Valve avoids the risk of people repurposing cheap hardware away from Steam, keeps the hardware business sustainable on its own, and still offers another path into PC gaming for people who prefer a console style box.
For PC gamers and hardware enthusiasts, the key takeaway is this: the Steam Machine is more PC than console, and it is being priced that way. Do not expect a fire sale console level price where the hardware feels almost too good for the money. Instead, expect something closer to a well spec’d small form factor gaming PC that is ready for the living room and tuned for Steam, but still flexible enough to behave like a normal computer if you want it to.
Original article and image: https://www.pcgamer.com/hardware/valves-decision-not-to-sell-the-steam-machine-at-a-loss-isnt-stupid-but-it-is-peculiar-says-baldurs-gate-3-publishing-boss/
