Steam Machine signals an even more expensive future for game consoles
Valve's Steam Machine, starting at $1,049, highlights rising costs in gaming hardware. It offers PS5-like performance at nearly double the price.
Valve has finally revealed the price of its Steam Machine, and it's not cheap. The base model with 512GB of storage costs $1,049, or $1,128 with a Steam Controller. The 2TB version is $1,349, or $1,428 with the controller. While these prices are not outrageous for PC gaming, the Steam Machine is designed as a living room console competitor. Its closest rivals are cheaper: a 2TB Xbox Series X costs $729.99, a PS5 Pro is $899.99, and the Switch 2 will be $499.99.
A key advantage is access to Steam's vast game library, but performance is comparable to the PS5, as noted in a Verge review. Valve states it is not using the traditional console model of selling hardware at a loss and recouping via subscriptions. Instead, it sees the Steam Machine as an extension of PC gaming.
However, the high price reflects a broader trend. Sony reported PS5 sales down 46% year-over-year after its price rose to $649.99. Xbox CEO Asha Sharma hinted that future business models may need to change dramatically, as mass audiences cannot afford thousands of dollars for a console. The PS6 is also expected to be costly.
Industry observers warn that consoles could become niche products, similar to the Steam Deck. Despite the open ecosystem, the Steam Machine's high price may limit its adoption.
