Track your games like you track movies. Try SavePoint free → ×
Track your games like you track movies. Try SavePoint free → ×
Skip to content
steam machine launch

Steam Machine Is Expensive Because Valve Refuses to Be a Console Company

Fred
Fred · · 4 min read

Valve just released a living-room gaming PC called Steam Machine. The price: $1,049 for 512GB, $1,349 for 2TB. That is nearly double what a PlayStation 5 costs.

Before you dismiss it as overpriced, understand what Valve is actually selling. It is not a console. It is a refusal to become one.

What Valve Could Have Done

Console companies have a playbook. Sony and Microsoft build hardware at a loss, sell it for $400-500, and make the money back through game sales, subscription services, and exclusivity deals. The hardware is locked down. The games are locked down. The ecosystem is controlled end-to-end.

This model works financially and it works for consumers who want simplicity. You buy the box, you know what you are getting, you know the games will work.

Valve could have done this. They could have subsidized Steam Machine to $500, made it run a locked-down version of SteamOS, and collected a 30% cut from every game sold through Steam. They would have a console.

They did not do that.

What Valve Actually Did

Steam Machine is a full PC in a box. You buy it at component cost (no subsidy). You own the hardware. You can install whatever you want on it. You can run any game that runs on Linux. You can sideload. You can modify. You can leave.

The operating system, SteamOS, is free and open. Valve is releasing the exact same SteamOS 3.8 that runs on Steam Machine so you can install it on your own living-room PC if you want. (AMD GPUs only for now, but they are working on expanding support.)

There are no exclusives. There is no lock-in. If you build your own PC tomorrow and install SteamOS on it, you have the same experience as someone who bought Steam Machine, except the hardware cost whatever you chose to spend.

This is not a console strategy. This is a PC strategy. And it is expensive because PC hardware costs what it costs.

Why This Matters

The TAG audience is adults with limited time. You do not have patience for platform politics. You want something that works, something that respects your money, and ideally something that does not lock you into a vendor ecosystem.

Steam Machine delivers on two of those three things. It absolutely respects your money by not subsidizing the hardware cost and then collecting rent on it later. And it does not lock you in β€” you own the hardware and the software is open.

What it does not deliver is simplicity. A PlayStation 5 is simpler. You plug it in, it works, every game is guaranteed to run. Steam Machine requires you to think about whether the games you want actually run on Linux. (Most AAA titles do not.)

The Risk Valve Is Taking

At $1,049, Steam Machine is not competing with PS5 or Xbox. It is competing with the idea that you should just build a PC if you want PC gaming.

And Valve is being honest about that. Their FAQ explicitly says: β€œIf I don’t get a Steam Machine right away, is there anything else I can do?” And the answer is: yes, build a PC yourself, or stream games from another PC, or run SteamOS on your own hardware.

That is not how console makers talk. Console makers want you to feel trapped. Valve is saying: here is an option, but it is not the only option, and we think open systems are better for you in the long run.

Whether that philosophy is right is debatable. Whether it is a good business move is even more debatable. But it is consistent with everything Valve has ever said about PC gaming.

Who This Is For

If you want a gaming box for your living room and you do not care about philosophy, buy a PS5. It is cheaper, simpler, and the game library is deeper.

If you want a gaming box for your living room and you believe that lock-in is bad, that open ecosystems are better long-term, and that you should own your hardware, then Steam Machine is exactly what you have been asking for. And yes, it costs $1,049. That is the price of principles.

The third group is people who do not buy consoles at all and will never consider Steam Machine. That group is probably right. For the price of Steam Machine, you could build a better PC for your living room, and have more control, and learn something in the process.

Valve knows this. That is why they are releasing SteamOS for your own hardware. Steam Machine is not the answer for everyone. It is the answer for people who want a pre-built, philosophically consistent living-room PC from the company that made the living room PC possible.

Talking Steam Machine, console wars, and couch gaming philosophy on the TAG Discord.

Steam Machine is the expensive choice

Steam Machine costs $1,049 because Valve will not subsidize hardware and then own you with lock-in. This is intentional. It is expensive on purpose. If that offends you, Valve wants you to know there are cheaper options. If you respect that philosophy, the reservation system opens today, closes June 25th. First shipments start June 29th.

πŸ“Œ Save Steam Machine Is Expensive Because Valve Refuses to Be a Console Company to your backlog

Track every game you play, rate what's worth finishing, skip the overhyped ones.

Try SavePoint free β†’
More in this hub
TAG Reviews

Join us as we review games, events, and other gaming-related content!

Written by

Fred
Fred LEVEL 1

Fred has been gaming since his dad brought home a recycled PC from work and installed Hugo's House of Horrors as a toddler. He continues to play games almost daily across PC, console and mobile and may have a slightly addictive personality.

🎯 Your byline could be here

TAG creators write about the games they actually play, and keep 60% of the ad revenue. No quotas, no topic assignments.

Request an invite β†’

MORE LIKE THIS