The Steam Machine Was Originally Meant to Cost About $750

The Steam Machine Was Originally Meant to Cost About $750

The Steam Machine, Valve's mini gaming PC, was announced with an eye-watering $1049 price tag for the entry-level 512GB model. However, this likely isn't the price Valve initially envisioned for its compact gaming console. During a recent conversation with Valve Engineers Pierre-Loup Griffais and Yazan Aldehayyat, I inquired about what the Steam Machine might have originally cost before the current memory market crisis.

While the engineers didn't provide a specific number, they suggested the price increase was "probably similar" to the one the Steam Machine underwent last month. A quick calculation shows that the Steam Machine's price hike was around 35-36% above its original $549 price, leading to the current $789. Applying the same math to a hypothetical $749 pre-RAMflation Steam Machine, the final $1049 price would be about 33% more expensive.

Valve hadn't finalized a price before needing to adjust it to reflect the current market reality. A $749 price tag would bring the Steam Machine much closer to my original estimate of around $800. However, the future of the RAM market remains uncertain.

Gaming Industry Prices Are on the Rise

The current AI-fueled RAM crisis has affected more than just the Steam Machine. Both the Xbox Series X and PlayStation 5 saw price increases a few months ago. According to a memo by Xbox CEO Asha Sharma, the hardware going into Xbox consoles will eventually cost five times more than it originally did, suggesting further price hikes may be on the horizon.

Despite these increases, there's always the possibility that the RAM bubble could burst, allowing Valve to lower the Steam Machine's price closer to its original target. However, given the current trends, it's unlikely to happen anytime soon.