Can everyone please stop claiming and speculating that Valve’s new hardware will be loss leaders? If you watch LTT and Gamers Nexus’s first videos on the announcement, they actually spoke with Valve’s engineers. And the Valve representatives already said that the new hardware WILL NOT BE LOSS LEADERS.

There isn’t even evidence that the Steam Deck was a loss leader. All GabeN said was that the lowest cost launch model was priced “painfully”, which doesn’t necessarily mean it was sold at a loss, it could easily have been sold at a very tight margin.

And no, low margins does not meet the definition of a loss leader. A loss leader is a product sold below cost, in that every unit sold actually costs the seller money.

I get the desire to speculate on new hardware. It’s fun and it helps pass the time until we hear more info from Valve. But there’s limits to what is reasonable. Valve has already stated that the new hardware won’t be loss leaders, so hoping and/or claiming they are isn’t reasonable.

Sorry for the rant, but all of the comments that seem to have only skimmed headlines are quickly getting to me

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    8 hours ago

    You didn’t present one piece of evidence that $600 is a losing price point for the base model (and you even stated that explicitly). All you’ve done is shown that Apple is known for their outrageous markups; something we all can see with our own eyes.

    Given they’re greedy enough to markup storage and ram so much; I’m willing to bet they won’t bother with techniques like “loss leaders”. I bet the margins are just extremely tight but that profit is above zero.