Console manufacturers sell at a loss because they have to sell the hardware first before they can sell anything else. They know they’ll get that money back on software you couldn’t have bought without the console.
While I’m sure Valve hopes to bring some new customers to Steam this way, I’ll bet that the majority of Steam Machines sold will be to users who are already invested in Steam and have an existing library of games to play. If they take a loss on hardware, they can’t be certain they’re actually making up for it elsewhere.
It’s not practical for the Machine to be a loss leader because it’s a supplementary product, not one the rest of their business is dependent on.
They used the same strategy for the steam deck. Valve acknowledged that it was sold at a loss or near loss and it was incredibly successful because it broke into the handheld market. Don’t know why they wouldn’t do the same for this console like system. I’m hoping they do.
You picked one quote out of both those articles to interpret as your counter to my point? Seems to me this isn’t even an argument. It’s a consensus among anyone that understands the cost of building that device. Amazing that your response to me providing sources is “But the owner didn’t say it explicitly, so it doesn’t count.” Are you 12 years old? Why don’t you provide some sources about how profitable the steam deck was?
Hey if you wanna interpret Gabe’s quotes of aggressive and painful pricing as something other than a loss or close to a loss as I said in my comment, while ignoring the theoretical cost of building a device like that, and the precedent set by so many other companies trying to break into a market like that, there’s nothing else I can say to get you off “winning” this argument. So yeah, I’m sure you’re right. I’m sure Valve is just banking on a bunch of existing steam users to want to buy a $700–$800 mid range box so they don’t have to move their PC into their living room to game on the couch. Solid business model.
That could just as easily mean the profit margins were thin, not necessarily negative. I asked if there was actual confirmation that it’s being sold at a loss, because all I could find was speculation, and you gave me speculation.
Console manufacturers sell at a loss because they have to sell the hardware first before they can sell anything else. They know they’ll get that money back on software you couldn’t have bought without the console.
While I’m sure Valve hopes to bring some new customers to Steam this way, I’ll bet that the majority of Steam Machines sold will be to users who are already invested in Steam and have an existing library of games to play. If they take a loss on hardware, they can’t be certain they’re actually making up for it elsewhere.
It’s not practical for the Machine to be a loss leader because it’s a supplementary product, not one the rest of their business is dependent on.
They used the same strategy for the steam deck. Valve acknowledged that it was sold at a loss or near loss and it was incredibly successful because it broke into the handheld market. Don’t know why they wouldn’t do the same for this console like system. I’m hoping they do.
Do you have a source for that? All I can find are conflicting rumors and speculation.
https://www.nme.com/news/gaming-news/gabe-newell-says-steam-decks-aggressive-pricing-painful-but-critical-2995253
https://www.indiekings.com/2025/07/why-valve-sells-steam-deck-at-loss.html
The only actual quote here is
But Newell didn’t actually say it was at a loss, did he? Seems like they’re just speculating.
You picked one quote out of both those articles to interpret as your counter to my point? Seems to me this isn’t even an argument. It’s a consensus among anyone that understands the cost of building that device. Amazing that your response to me providing sources is “But the owner didn’t say it explicitly, so it doesn’t count.” Are you 12 years old? Why don’t you provide some sources about how profitable the steam deck was?
I picked the quote that’s actually attributed to Gabe. The second link you gave doesn’t even have any quotes at all.
It doesn’t sound like Valve actually did confirm this, but that some news outlets ran with a rumor.
Hey if you wanna interpret Gabe’s quotes of aggressive and painful pricing as something other than a loss or close to a loss as I said in my comment, while ignoring the theoretical cost of building a device like that, and the precedent set by so many other companies trying to break into a market like that, there’s nothing else I can say to get you off “winning” this argument. So yeah, I’m sure you’re right. I’m sure Valve is just banking on a bunch of existing steam users to want to buy a $700–$800 mid range box so they don’t have to move their PC into their living room to game on the couch. Solid business model.
That could just as easily mean the profit margins were thin, not necessarily negative. I asked if there was actual confirmation that it’s being sold at a loss, because all I could find was speculation, and you gave me speculation.
To Newell “painful” probably means one less annual yacht’s worth of profit.