Valve has announced the price point for its long-awaited gaming PC, the Steam Machine, with an added caveat that it releases this month at a higher cost than originally planned.
It’s rare for companies to be so transparent, but as Valve says, it’s important to explain the high price and how it’s been impacted by external global factors, including the rising demand for compute power to back new AI systems.
This will likely be a significant factor in the purchase of any technology in the coming years, with components including processor chips and memory now being significantly more expensive for manufacturers as demand increases exponentially.
Steam Machine prices announced – quick links
How much the Steam Machine will cost in Australia
As announced, the Steam Machine will be priced as follows in Australia:
- Steam Machine 512GB – $1609
- Steam Machine Bundle: 512GB + Steam Controller – $1728
- Steam Machine 2TB – $2109
- Steam Machine Bundle: 2TB + Steam Controller – $2228
For those unfamiliar, what makes this particular PC stand out is that it’s a dedicated gaming PC optimised to run Steam and PC games, and designed to function as a hybrid PC/console.
It’s for the people who want a console-like experience when running their games, without the need to purchase a separate console. Notably, it’s also six times more powerful than the handheld Steam Deck, which serves a similar function but with added portability.
Per Valve: ‘Steam Machine runs Valve’s gaming-first operating system. SteamOS is designed to provide a plug-and-play user experience, while keeping the power and flexibility of a PC … and it’s a PC … Install your own apps, or even another operating system.’
In terms of cost, it remains on-par with other similarly-powered gaming PCs, with its compactness and simplicity being a significant selling point. As outlined by Valve though, the price point could be a hurdle for some players who expected a thriftier device.
Why the Steam Machine costs more than originally outlined
In its initial announcement, a possible cheaper price point was a head-turning aspect of the Steam Machine. With gaming PC prices blowing out to the multi-thousands, Valve aimed to create a more affordable, flexible solution.
But as noted, during production, the demand for AI integration in all facets of daily life and the workforce has inspired much higher costs for an array of essential components.
‘Steam Machine, like our other hardware products, is made up of many components that we source from manufacturers around the world,’ a Valve spokesperson said in a blog post.
‘The price at which we sell our hardware is a direct result of the cost of these components. We felt like we had a good understanding of how those costs might change over time when we first started sourcing them for Steam Machine back in 2023. That understanding was born from the many years of data we all have about the evolution of PC hardware prices – primarily, that it tends to get cheaper over time as new technology arrives.
‘Over the past year or so, that has changed quickly and significantly, most visibly for RAM and storage components. There are a variety of reasons, all of which are affecting hardware products everywhere. The overall effect is that our original goal for the price of Steam Machine is no longer viable. So the prices we’re sharing today reflect the state of the world for manufacturing; or, more accurately, it reflects the price of the components as we’ve secured them over the past six months.’
Valve also reportedly faced significant hurdles to availability, as there were periods where they ‘couldn’t source’ some of the components at all, at any price, leading to console delays, and an expected shortage of units available at launch.
To ensure that all those interested have the possibility of obtaining a Steam Machine, and to avoid the onslaught of bots sweeping stock, Valve has established a randomised reservation and waitlist order system.
‘We underestimated customer interest when we recently released the new Steam Controller, and we wanted to create a system that would be less frustrating and more fair for everyone,’ a spokesperson said.
‘A launch that starts at a specific day and time tends to reward bots, people with fast internet connections, talented gaming fingers for quick F5/refresh reactions, and those who can schedule their life around that moment. By accepting reservation signups over the course of a few days, without any incentive to be first, we’re hoping to take away some of that friction.’
In the era of such high demand for compute power, it feels likely that reservation systems like this will become increasingly necessary, particularly in the world of gaming. As one of the first big new ‘console’ releases of this strange new era, how the Steam Machine’s launch flows will be worth watching.
