Valve Uncertain About Steam Machine Price Drops
What Are Steam Machines?
Steam Machines are pre-built gaming personal computers (PCs) that run Valve Corporation's SteamOS, a Linux-based operating system designed for the living room. They are manufactured by third-party hardware partners such as Alienware, Zotac, and Gigabyte. Steam Machines aim to bring the flexibility and library of PC gaming to a console-like form factor, but they have struggled to compete on price with dedicated game consoles.
Key Facts
| Attribute | Value |
|---|---|
| Manufacturer | Valve Corporation (software); multiple hardware partners (hardware) |
| Operating System | SteamOS (Linux-based) |
| Release Year | 2015 (initial launch) |
| Price Range (as of interview) | Approximately $500 to $3,000 depending on configuration; Valve has not announced specific price drops |
| Target Audience | Existing Steam users seeking a dedicated living-room PC gaming experience |
| Primary Competitors | Sony PlayStation 4, Microsoft Xbox One, and custom-built gaming PCs |
Why Is Valve Uncertain About Steam Machine Price Drops?
Valve has expressed uncertainty about reducing the price of Steam Machines because the company is still evaluating whether lower prices would attract enough new users to offset reduced profit margins for hardware partners. In a recent interview with Rock Paper Shotgun, Valve's Greg Coomer stated:
"We're still trying to understand the market dynamics. It's not clear that simply dropping the price would create a sustainable ecosystem for our partners." — Greg Coomer, Valve, in Rock Paper Shotgun interviewValve did not disclose any specific price reduction targets or timelines. The company acknowledged that some gamers may be priced out of the current Steam Machine lineup, but it has not committed to any price cuts. Valve has not committed to any price reduction timeline for Steam Machines.
How Does Steam Machine Pricing Compare to Consoles?
Steam Machines cannot compete on price with subsidized consoles such as the PlayStation 4 or Xbox One, according to Valve's interview. Console manufacturers often sell hardware at a loss and recoup costs through game licensing fees, a model that Valve's hardware partners cannot replicate. The interview noted that a typical Steam Machine with comparable performance to a $400 console often costs $600 or more. Valve's hardware partners have struggled to match console price points due to the lack of a subsidy model.
Who Is This For?
Steam Machines are targeted at existing Steam users who want a dedicated living-room PC for gaming, not at console switchers. The interview indicated that Valve sees the primary audience as PC gamers who already own a Steam library and desire a second, couch-friendly device. Steam Machines are targeted at existing Steam users who want a dedicated living room PC, not at console switchers.
Common Questions
Will Steam Machines ever get cheaper?
Valve has not announced any plans for price drops. In the interview, the company stated it is still studying the market and has no timeline for reducing prices.
Why are Steam Machines so expensive?
Steam Machines are built from standard PC components without the volume discounts or subsidy models that console manufacturers use. Valve's partners must make a profit on hardware, driving up costs.
Should I wait for a price drop before buying?
Valve advises that there is no guaranteed price reduction in the near future. If you need a living-room PC gaming solution now, a Steam Machine is available, but you may pay a premium over a console.
Sources and Methodology
This article is based on a single primary source: the Rock Paper Shotgun interview with Valve's Greg Coomer, published on the Rock Paper Shotgun website. The interview was conducted in 2015 (exact date not specified in the source). All quotes and factual claims are derived from that interview. No additional sources were synthesized. This article was last updated on 2025-04-08.