We could, you know, just wait and see.

*ducks*

Since they've said it's basically an entry level gaming PC that will cost more than a console, I think the >700, <$1000 speculation is most likely.

It can't be a loss leader.

The steam machine is, hardware-wise, just a regular Mini-PC. Valve even lets you put whatever OS you want on there. So if this was a loss leader, that would mean that non-gamers and even small businesses would buy these, would install Windows on them and use them as office PCs, with Steam probably not even installed on the PC.

With the Steam Deck, the form factor made it impractical or at least really weird to use them as office PCs. The steam machine doesn't have that issue.

Console manufacturers sell at a loss because they need to sell the console first before they can sell anything else. They can expect to make that money back on software the user could not have bought without the console.

Valve doesn't need people to buy Steam Machines to get them to start using Steam. In fact, I suspect most units sold will be to users who are already invested in the ecosystem. Selling at a loss would just be a straight loss to them.

They can't sell them at a loss without a locked-down ecosystem. Sony learned that the hard way with the OtherOS support for the PS3 that lead to a ton of them being purchased to build cheap supercomputer ls and never spending a dime on games or software to cover the loss.

I’m aware of Valve being very generous with warranty/replacements of controller hardware for the Index. Even years after the warranty is up. But I think this is because of the major durability issues and known defects that the Index Controllers have.

In any case, Valve seemingly has lost money on a certain percentage of Valve Index kits/controller hardware. Based on how many people I know, including myself, who have gotten replacement hardware from Valve. Sometimes many times for recurring issues.

But I’m not aware of Valve doing the same for the Deck.

Edit: and you can tell they focused really hard on making the new controllers more durable:

• No charging port to melt
• durable sticks that won’t start drifting
• No special finish on the controller that can be worn/scratched away
• No internal battery to go bad
• seemingly far fewer delicate parts

Funny point on the melting charging port. 2 years or so after the Index came out, SteamVR started warning using with a status dialog that told users to stop charging their controllers while they use them. They never accounted for long play sessions and people who would want to charge while playing.

USB-C has durability issues when used like that.

Cost aside. If they don't price it competitively between the Xbox and the PS5, the Steam Machine will be DOA.

The Deck is a perfect example of what they should try to replicate. If they don't do that, it will flop.

To be a loss leader doesn't the need to lead to something?

The only way it could make sense that they're selling these at a loss would be - oh yeah. They're coming straight for Nintendo / Sony / Microsoft now, huh?

The day I see a steam console in wal mart is a day I will be very happy.

To be fair, I don't watch either of those youtubers. So I had no knowledge of this.

I‘m always amazed at the amount of people believing the Steam Machine will be sold for the same or less than the most expensive version of the Steam Deck while being six times as powerful.

Steam's business model does prevent it from pricing its consoles like Sony, Xbox, Nintendo, etc. since they need the console itself to be profitable, not just a means of bringing in games sales.

It's plausible that they're taking into account an uptick in overall game sales from this console - at least for me, I've been purchasing new games mostly off of steam rather than playstation/nintendo ever since I got a steamdeck - but you're right that they aren't going to sell at a loss.

Regardless of the price (and whether or not I even buy one), I think it's healthy to have another "big" player in the console market.