Tim Sweeney Takes Aim at Valve Over Steam Deck Price Hike

The once budget-friendly Steam Deck, Valve’s handheld gaming PC, recently faced an astronomical price increase. Valve attributed the rise to "global logistical challenges," a euphemism for the ongoing global memory crisis. In response, Epic Games CEO Tim Sweeney entered the fray, drawing attention to Gabe Newell's $500 million superyacht. On X, Sweeney remarked, "Everyone’s being too harsh here. There has been a significant rise in the cost of components that Steam customer spending ultimately funds, and economic trends have created severe disruptions in the component parts supply chain for megayachts."

The Superyacht That Inspired Sweeney’s Jabs

For those unfamiliar, Gabe Newell’s Leviathan is a 111-meter superyacht equipped with a private hospital, a submarine garage, and 15 gaming PCs. It’s currently ranked among the 50 largest yachts in the world. The vessel also features two gyms, a 250 square meter beach club complete with a spa and bar, and diving platforms. It's clear that the Leviathan is a symbol of extreme luxury, which Sweeney used to highlight the disparity in how companies handle rising costs.

However, it does seem like Sweeney’s comments may have been more for the sake of commentary than a direct critique. While Gabe Newell certainly has the means to afford a superyacht, it’s hard to believe the Steam Deck price hikes would fully cover such an expense. The surge in memory prices has impacted numerous companies, with many raising their prices to offset the increased costs. Without specific details on the Steam Deck’s hardware pricing, it's unclear whether Valve is profiting more than before from the price increase.

Sweeney’s post received mixed reactions. One top comment read, "Hey Tim, when was the last time Valve laid off their employees? Oh yeah, never?" This highlights the fact that Valve hasn’t had public layoffs since 2019, when 13 employees were let go. Tens of staff were laid off in 2013 as well. In contrast, Epic Games recently let go of 1,000 employees, with one employee noting, "We only had a slight hint that the company revenue wasn't doing well."

Despite the nearly 50% price increase, the Steam Deck sold out in North America within 24 hours. This success raises concerns that even the most affordable gaming hardware may soon become a luxury item. As prices continue to climb, the idea of owning a Steam Machine for the living room may soon feel like a necessity for the wealthy, even if it’s not entirely Valve’s fault.