Valve Explains Why It Doesn’t Subsidize Its Hardware Platforms
Valve says it does not subsidize its Steam Deck or Steam Machine hardware because selling below cost is a strategy for building closed ecosystems, which goes against its belief in open PC systems. The company argues customers should be free to choose devices based on their own needs, not locked into a platform through subsidized hardware.
Background
Valve, the company behind the Steam PC gaming store, recently announced new "Steam Machine" mini PCs and raised prices on its handheld Steam Deck. In the gaming industry, console makers like Sony (PlayStation) and Microsoft (Xbox) routinely sell each unit at a loss ("subsidize" it), betting they'll recoup the money through game sales and subscriptions. Valve has always refused this model, insisting on selling hardware at a profit. This stance has come under renewed scrutiny as Steam Deck prices rise sharply. The article defends Valve's approach, contrasting it with console subsidies (which it calls predatory) and with phone subsidies (where carriers, not phone makers, take the loss in exchange for binding contracts). The broader context: the PC vs. console debate about openness, and Microsoft's recent price hikes on Xbox hardware.