So Valve announced their next big hardware release last week, to include a new VR headset, a new controller, and of course, a new console/PC thing in the “Steam Machine”. This wouldn’t be the first time Valve has tried to release a Steam-focused home gaming device, as their last Steam Machine project failed utterly, but this time I think they may actually do well with it.
The last time Valve tried to release a Steam Machine, it was just a licensed small form-factor PC through various manufacturers. No one bought them. The Steam platform wasn’t nearly as robust as it is now, and it really wasn’t what gamers wanted. It wasn’t enough like a console to make console players interested, and it wasn’t powerful enough to interest PC fans.
But this is after the Steam Deck. This is after Valve has SteamOS working so well. Let’s just say that Valve has learned a lesson or two, and seems poised to step firmly into the small form-factor PC and console market.
Now the Steam Machine is not a console, by any means. It is a small form-factor PC, running on SteamOS operating system by default, but fully capable of being used as a normal PC. But because it is running SteamOS, it can also effectively be used basically like a console, just one that will run much if not all of your library of games on Steam as if it were a console. That’s where their new controller comes in, as it pairs natively to the new Steam Machine, helping to make it much more console-like.
The only issue here is, how will the gaming community take to the Steam Machine?
For me, it just comes down to cost. From what I’ve heard, Valve is planning to sell the Steam Machine in the price range of an entry-level PC. Does that mean $600? $800? $1200? More? Any of those prices have been attached to “entry level PCs” in the past, so it’s hard to say where Valve will land on a price for the Steam Machine. If it is on the lower end of that range, I could see the Steam Machine doing quite well in the console market (even though it isn’t a console per se’), especially if the PS6 and whatever new hardware Xbox puts out costs more.
But here’s the problem: What if Valve sets the price too high? If the Playstation 6 and Xbox Whatever (assuming a new Xbox ever comes out) cost less than the Steam Machine, what incentive is there to buy Valve’s new toy? PC players will stick with their current PCs, and few will want to downgrade to an entry-level PC like the Steam Machine. So then I have to ask: Who is the Steam Machine for?
If it isn’t cheaper than the next generation consoles, or at least competitively priced (within $100 or so), why should console players give up their current collection of console games and start over on Steam? We have to assume that most PC players, other than those who are playing on ancient computers that might see the Steam Machine as an upgrade, aren’t really going to have much of an interest in it. Why would they? The Steam Deck lets PC players take their Steam library on the go, so that was a reason to buy it, but the Steam Machine is a stationary device.
Let’s be frank here: The Steam Machine is marketed squarely at console players. If Valve can’t compete with the next-gen consoles price-wise, then I’ll be honest… the Steam Machine will fail. Again.
But here’s where I think there is some hope for the Steam Machine. As I said earlier, Valve has learned a lot over the last few years regarding the hardware market. They had a winner with the Steam Deck. Their SteamOS is an excellent product. Also, they saw how the last “Steam Machine” project went up in flames, and I doubt they will follow the same path again. Finally, I’m fairly certain that they sell their Steam Decks at a loss, in order to be competitive with the Switch and Switch 2, and undercut the other handheld computers out there (Xbox Ally X, I’m looking at you).
If Valve is willing to undercut the other handheld gaming computers, why wouldn’t they take a loss on the Steam Machine to keep it at least competitive with the current and upcoming console offerings? We’ll see how the cookie crumbles next year, but I’d honestly be shocked if at least the entry-level Steam Machine (512gb model) sells for more than $600 to $800 at launch.
If that happens, I think Sony and Microsoft will find themselves having to seriously reconsider their prices for their current and upcoming consoles. Because if they don’t, Valve is going to do very, very well with the Steam Machine… and I’m here for it, to be honest.
