The Steam Machine Is Going To Cost More Than You Think, And It's Pretty Clear Why

Steam is a popular computer gaming platform, and now, it has rocked the industry with the announcement of its TV-compatible console, the Steam Machine. It promises enough power to play an internal library of games on its own SteamOS operating system. Though this has excited many PC gamers and intrigued the gaming world in general, there are concerns about how much it is actually going to cost.

Gaming has only become more expensive over time, with increasingly complex consoles and more in-depth games. As the Steam Machine straddles the line between a gaming console and a computer, talk about how much this item will ultimately cost has flooded online forums.

Valve, the company behind the Steam Machine, sees this product as a competitor with PCs, not necessarily other gaming consoles like Xbox or Play Station. This seems to hint that it will be priced higher, comparable to a computer. There is also the issue of current price hikes for internal memory systems, which the Steam Machine will certainly need. Once the final price is actually announced by Valve, it may end up being met with exasperation by a public that is already a bit tired of paying so much for gaming products.

One reason the Steam Machine's price will likely be high is because of the memory shortage. Driven by AI, this memory chip shortage will also potentially affect the price of smartphones and other electronics. Big companies in tech that have invested a great deal in AI, such as Google and Microsoft, are taking over the memory chip market for their technology. Because the inventory is dropping rapidly, the price could rise. This type of strain on essential components may be reflected in the high price of the Steam Machine, as it has the unlucky timing of releasing during this crisis.

Typically, when releasing a new gaming console, companies offer it at a lower price point, with the long-term strategy being that high sales will make up for that cost and result in a profit. Valve does not intend to employ this strategy of subsidizing the Steam Machine. If the Steam Machine does not perform well, this could give more of a sense of security for Valve. However, it could also drive away those who would buy it at a price more comparable to gaming consoles.

Valve also feels that the Steam Machine compares to building your own custom gaming PC from scratch and thus, the price could match that level of performance and quality. The strength of its operating system, the quietness of the console, and the compact size are all considered contributors to a potentially high price tag.

While Steam may have a dedicated user base with many great games to play, those same fans have plenty to say about the unannounced price. Different prices are being tossed around on Reddit, including estimates of $499, $800, and even above $1,000.

One poster concerned about the potential price says that "laptops have better specs for way cheaper. This is insane." Another states, "If it's above $500 in this economy, it will not do well at all." Others, however, have a more optimistic assessment, predicting it will be priced closer to "a BUDGET PC, not high-end."

Consumers looking to purchase the Steam Machine eagerly await a final price point from Valve. Despite hopeful sentiments, the current economy plus the market Valve hopes to target may result in a more aggressive cost than consumers think is worth it. It will be interesting to see the final decision.