Article discusses the effect of rising hardware prices on the deck.
Some highlights:
How much worse has the pricing situation gotten for Valve since November? Superdata Research founder and SuperJoost newsletter author Joost van Dreunen suggested that the 512GB Steam Machine model would probably run $50 to $75 more than he expected when the Steam Machine was announced, and to expect a price “potentially $100+ above target” for the high-end 2TB model. That would mean a $599 to $629 price at the low-end and $849 to $899 for the high-end model, in his estimation.
Wedbush Morgan analyst Michael Pachter agreed that, even with the additional component costs, Valve would likely “try to get it out at $599 or so for the 512GB version,” A starting price higher than that would mean “abysmal” sales, he added. “I think $700 is a death sentence and $1,000 is unsellable.”
I’d recommend reading the article though, it has a lot more of value than just those quotes. It goes on to talk about how the price increases will likely hurt valve more than traditional console makers, and how these increases will affect sales.
The problem with a price war is Valve is “just” a multi-billion dollar company, very impressive for their size but a $100bn company like Sony and especially a $3 trillion company like Microsoft could squeeze them out of the market.
And they would have to subsidise the cost by far more than Sony/Microsoft do due to the smaller scale of production and more expensive newer contracts.