The assumption is that Valve made their procurement deals before the sudden price hikes, in which case the costs might actually be sane until the deal runs out and they need to renegotiate prices.
Your intuition is correct that the steam machine will go up in price but I think It’ll still have an edge over building your own PC for a couple of reasons:
Valve has economies of scale and can make contracts directly with Dram manufacturers/distributers
The Steam Machine is just already cheaper to make than a pre-built because it has a custom APU (rather than a standalone graphics card). Not to mention running Linux means not having to pay for a windows licence
The Steam Machine only has 16 GB of RAM. Most everyone I know building gaming PCs with DDR5 are using 32 GB
The steam machine is not a cutting edge device, but its lower end capabilities may become normalised if building a new PC becomes cost prohibitive. It may force the whole gaming industry to take a step back for a few years. And I mean, the steam Machine can play Cyberpunk 2077 at 4k 60 fps with FSR upscaling so its got enough performance for lots of consumers
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Why is the steam machine not going to be subject to the same costs? Why then would we believe that valve will just eat that?
Same as consoles. Sell at a loss to increase game sales and earn more on the backend.
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Its not happening. Selling a PC just isn’t the same as selling a console that can basically “just” play games.
Steam already rakes in cash due to being in a dominant market position on pc. Selling at a loss doesn’t get them much.
The assumption is that Valve made their procurement deals before the sudden price hikes, in which case the costs might actually be sane until the deal runs out and they need to renegotiate prices.
Your intuition is correct that the steam machine will go up in price but I think It’ll still have an edge over building your own PC for a couple of reasons:
Valve has economies of scale and can make contracts directly with Dram manufacturers/distributers
The Steam Machine is just already cheaper to make than a pre-built because it has a custom APU (rather than a standalone graphics card). Not to mention running Linux means not having to pay for a windows licence
The Steam Machine only has 16 GB of RAM. Most everyone I know building gaming PCs with DDR5 are using 32 GB
The steam machine is not a cutting edge device, but its lower end capabilities may become normalised if building a new PC becomes cost prohibitive. It may force the whole gaming industry to take a step back for a few years. And I mean, the steam Machine can play Cyberpunk 2077 at 4k 60 fps with FSR upscaling so its got enough performance for lots of consumers