Valve Says Steam Machine Is More Expensive Than It Wanted

Valve says the Steam Machine is priced higher than it hoped, with the base model starting at $1,049. In an interview with Rock Paper Shotgun, engineer Yazan Aldehayyat said the company wanted the device to work as a more affordable entry-level PC, but component, manufacturing, shipping, and distribution costs pushed the price up.

“It’s definitely more expensive than we hoped,” Aldehayyat said, while explaining that the hardware inside the small PC-style system is the main driver of the cost.

Valve isn’t ready to say whether the price could come down later. Asked if lower component prices might help in the future, Aldehayyat said it was “too dangerous” to speculate right now, adding that the company would rather wait and see how the market moves.

Designer Lawrence Yang pointed to the same issue, saying component prices are still too high and parts are too scarce for Valve to make the device at the price it originally wanted. He also framed it as a broader industry problem, not something unique to Valve.

The price has already raised questions about who the Steam Machine is for. Analysts said the system is likely to be a “niche device,” citing both its $1,000-plus price and its form factor.