Valve admits Steam Machine costs more than expected
▼ Summary
– Valve admitted the Steam Machine’s price is higher than hoped, with the base model starting at $1,049.
– Engineer Yazan Aldehayyat cited component costs, manufacturing, shipping, and distribution as key factors driving up the price.
– Valve declined to speculate on future price reductions, stating it’s too risky to predict market changes.
– Designer Lawrence Yang noted that current component prices are too high and components too scarce for Valve’s desired price point.
– Analysts predict the Steam Machine will be a “niche device” due to its high price and form factor.
Valve has acknowledged that the price of its Steam Machine has landed higher than the company initially hoped, with the gaming giant admitting the hardware is more costly than anticipated.
Speaking to Rock Paper Shotgun, Valve engineer Yazan Aldehayyat explained that while the company originally aimed for an entry-level price point for its console-mini-PC hybrid, a range of unavoidable expenses pushed the final cost upward. The base model of the Steam Machine is currently priced at $1,049.
“The big, number one factor in cost is the components that make up the device, and you know, the cost of making it and shipping it and distributing it, etc. etc.,” Aldehayyat said. “I mean, as we said before, I think we really wanted the Steam Machine to be a good entry-level PC. I think we mentioned that in November, and we want it to be affordable for as many people as possible. It’s definitely more expensive than we hoped.”
When asked whether the price could eventually drop as component costs fall, Valve remained cautious. “It’s too dangerous for us to speculate right now,” Aldehayyat said. “I would say, like, anything we say now is probably gonna be unfortunate statements in the future, but I think we just have to wait and see what the market does, because I don’t think anybody right now is able to predict what’s going to happen in the future, so we’d like to refrain from trying to make predictions that are difficult to make right now.”
Designer Lawrence Yang echoed those sentiments, noting that current market conditions are working against Valve’s pricing goals. “Suffice to say, at least at this moment, component prices are too high, and components themselves are too rare, to make what we want, at the price that we want, when we want to. And I think it’s something that’s shared by everyone in this industry right now.”
Analysts who spoke to GamesIndustry.biz predict that the Steam Machine will remain a niche device, pointing to both its high price and its unique form factor as limiting factors for broader consumer adoption.
(Source: GamesIndustry.biz)
