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
This comment is so silly and yet I keep seeing it everywhere. What do you think the Xbox and Playstations are? What is it that xbox and playstation customers are looking for that this small computer isn’t?
You are correct in that all technically fit the definition of computers. However consumers don’t care about technical definitions or think rationally about purchases. They don’t all do a rational analysis of the products on the market that would accomplish their goals and spend accordingly. They walk into GameStop and buy one of the boxes that makes call of duty show up on their living room tv. Just like the Deck fits the definition of a handheld computer with a built in screen and controllers for playing games but isn’t stealing any customers from the switch.
Deck isn’t selling millions and it’s doing just fine. The Steam Machine will be a small computer box priced as such and there won’t be a single person that decides to buy it over a ps5, and that’s fine. Valve doesn’t have to compete with consoles cause they don’t make consoles.
Valve themselves have said that the Machine will not be priced like a console but like an entry level PC whatever that means. The only people that will notice this to buy it are people who already know what a PC is.
No, it isn’t, in practice. Xbox and PS5 have more in common with my iPhone than my desktop PC or NAS when it comes to being able to do what I want with it.
It will be interesting to see how proprietary the Steam machine is. That’s how I’d end up classifying it as console or miniPC.
I think the difference is that the Xbox and PlayStation are locked down to their respective ecosystems with monthly subscription and only one online store. Microsoft and Sony have almost guaranteed return based on that alone. If valve prices this as a loss leader what’s to stop a large corporation to buy 20k steam machines and use them as computers instead of consoles. Then valve is just eating that cost with no return on the other side.
I’m not sure cost can be set aside from a price discussion when they’ve explicitly stated it won’t be a Costco rotisserie chicken.
With the number of consoles sold this generation, I’m not sure where the limit is for what people will spend to play the games they want. With console pricing has trailing budget gaming PC’s, I could see a number of people getting a Steam Machine in lieu of the next Playstation or Xbox.
What would be interesting to see in the future is the split between units sold to lifelong console players making a change, and pre existing Steam users with stuffed libraries buying one for the couch. If the latter make up the majority of sales, but they priced it like a chicken, that’ll be a problem pretty quick.
Hopefully it shakes out well and indie game developers reap some well deserved rewards.
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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.
It’s a small computer, it isnt going after the Xbox or PS5 customers. It’s going for the people who want a computer in their living room.
This comment is so silly and yet I keep seeing it everywhere. What do you think the Xbox and Playstations are? What is it that xbox and playstation customers are looking for that this small computer isn’t?
You are correct in that all technically fit the definition of computers. However consumers don’t care about technical definitions or think rationally about purchases. They don’t all do a rational analysis of the products on the market that would accomplish their goals and spend accordingly. They walk into GameStop and buy one of the boxes that makes call of duty show up on their living room tv. Just like the Deck fits the definition of a handheld computer with a built in screen and controllers for playing games but isn’t stealing any customers from the switch.
Deck isn’t selling millions and it’s doing just fine. The Steam Machine will be a small computer box priced as such and there won’t be a single person that decides to buy it over a ps5, and that’s fine. Valve doesn’t have to compete with consoles cause they don’t make consoles.
Valve themselves have said that the Machine will not be priced like a console but like an entry level PC whatever that means. The only people that will notice this to buy it are people who already know what a PC is.
Consoles.
I have a hard time even figuring out what you’re trying to ask here.
That’s a small computer my guy
No, it isn’t, in practice. Xbox and PS5 have more in common with my iPhone than my desktop PC or NAS when it comes to being able to do what I want with it.
It will be interesting to see how proprietary the Steam machine is. That’s how I’d end up classifying it as console or miniPC.
The steam deck is also a small PC, just like the consoles and was priced perfectly for success
None of those consoles would directly boot into desktop Linux with just a few button presses.
They actually do, they’re just locked down from factory
https://github.com/SleepTheGod/PS5_Linux_Boot/blob/main/README.md
Remember that PS2 natively supported this and modern consoles like the Switch can boot directly into desktop Linux.
As far as how most people use their computers there is little difference.
I don’t use my PS5 to surf the web. I know you can use it to watch movies and stuff, but I don’t use it for that either.
At best, it depends on what kind of user most of the console owners are.
I think the difference is that the Xbox and PlayStation are locked down to their respective ecosystems with monthly subscription and only one online store. Microsoft and Sony have almost guaranteed return based on that alone. If valve prices this as a loss leader what’s to stop a large corporation to buy 20k steam machines and use them as computers instead of consoles. Then valve is just eating that cost with no return on the other side.
The Ukraine military has been using steam decks on the front line Do you really think it’s affected their bottom line?
I’m not sure cost can be set aside from a price discussion when they’ve explicitly stated it won’t be a Costco rotisserie chicken.
With the number of consoles sold this generation, I’m not sure where the limit is for what people will spend to play the games they want. With console pricing has trailing budget gaming PC’s, I could see a number of people getting a Steam Machine in lieu of the next Playstation or Xbox.
What would be interesting to see in the future is the split between units sold to lifelong console players making a change, and pre existing Steam users with stuffed libraries buying one for the couch. If the latter make up the majority of sales, but they priced it like a chicken, that’ll be a problem pretty quick.
Hopefully it shakes out well and indie game developers reap some well deserved rewards.
Is the machine competing with consoles? I thought it was just packaging an adorable sized pre built PC.
I think this is the goal that it would be priced competitively with the Pro or higher end consoles
They’ve built an ecosystem that gives you that console experience and if you really want to use it as a PC then you can.
The whole thing screams high quality experience for those that want it to just work or those that want to tinker
They really know their audience