Valve acknowledges Steam Machine costs exceed initial expectations.

With the price of the Steam Machine now revealed and preorders open, Valve’s marketing push for its new hardware is in full swing. Developers involved with the Steam Machine have been addressing various inquiries about the console, but one topic consistently overshadows the discussions: pricing.

There are multiple Steam Machine models available for preorder, and they all come with a hefty price tag—definitely higher than what you’d expect from current-gen consoles. This isn’t entirely on Valve; the company invested significant effort into sourcing components at reasonable prices. However, they faced challenges, with some components simply unavailable. A developer mentioned back in 2025 that Valve aimed for the system to be “affordable.”

The ongoing component shortages, exacerbated by the AI boom, have hit hard. Almost every console has seen price increases recently, and PC gaming parts are no exception.

“It’s definitely more expensive than we hoped,” Valve engineer Yazan Aldehayyat shared. He noted that Valve views the Steam Machine as a good value when compared to current market prices for PC components. Still, the reality is that the Steam Machine isn’t cheap, and Valve seemed reluctant to suggest that prices might decrease in the future.

“We understand that it’s probably not as affordable as… like, some people are going to be priced out,” Aldehayyat added.

Initially, Valve aimed for the Steam Machine to be priced similarly to the Steam Deck. However, after a recent price increase, the lowest Steam Deck model now starts at $789.99, making the Steam Machine’s actual price over 30% higher than Valve’s original target.

So why doesn’t Valve follow the lead of many console manufacturers and subsidize the Steam Machine’s cost? Valve believes that absorbing some of the costs “doesn’t align with our beliefs.” In a statement, they emphasized:

If there’s anything we’re passionate about at Valve, it’s our conviction that open systems are better in the long run, both for us and our customers. The openness of the PC ecosystem has been a key driver of hardware and software innovation, allowing anyone with a great idea to take a shot at it. When companies sell their hardware at a loss for competitive advantage or secure exclusive content, they are creating a more closed system, limiting your choice of software.

Valve reiterated this in an FAQ, stating that they view the Steam Machine as “an extension of PC gaming, not as a console.”

The traditional console approach involves selling hardware at a loss and recouping revenue through subscription services or exclusive game sales. While this may work for a single business in the short term, Valve believes that open ecosystems ultimately benefit customers more. The history of PC gaming supports this: its openness has driven hardware and software innovation for decades.

The strength of PC gaming lies in the ability to play the games you want on the hardware you choose. The Steam Machine is one solution to these challenges (and a solid one at that), but it’s not the only option, and Valve doesn’t want it to be.

While you could technically build a comparable PC for a bit less than the Steam Machine, what it offers is convenience and a compact design. In that light, the price of the Steam Machine isn’t unreasonable. Depending on the pricing of the next PlayStation or Xbox, the Steam Machine could indeed represent strong long-term value for gamers who prefer not to build their own PCs.

Had circumstances been different, before the RAM shortage impacted the industry, Valve’s new hardware might have generated more excitement. But if the Steam Machine is pricey, it’s a reflection of the current market where everything is costly.

Valve’s hardware pricing wasn’t unexpected, but fans remained hopeful.