Valve explains why it isn't subsidizing the Steam Machine
Valve has explained that it will not subsidize the price of Steam Machines, stating that doing so would create an unsustainable business model and distort the market. Instead, the company aims to let hardware partners set competitive prices naturally, focusing on software sales for revenue.
Background
- **Valve** is the game company behind Steam, the dominant PC gaming storefront, and the Steam Deck handheld console.
- **Steam Machines** were a short-lived 2015 initiative: PC-like consoles from various manufacturers running Valve's SteamOS (a Linux-based operating system), meant to compete with PlayStation and Xbox. They flopped due to high prices, weak game compatibility, and confusing messaging.
- Valve is now bringing back the **"Steam Machine"** concept — a new generation of third-party living-room consoles running SteamOS. This article reports a Valve employee explaining why the company won't subsidize hardware (sell at a loss like Sony/Microsoft), arguing the open-platform model lets partners compete on price instead.