Valve’s new Steam Machine starts at $1,049, but that is apparently far more than the company originally expected to charge for its compact gaming PC.
Valve engineer Yazan Aldehayyat said the final price was “significantly more” than the company had initially envisioned. Valve never publicly confirmed its original target, but the company now says that rapidly changing component prices have made that goal impossible.
The 512GB Steam Machine costs $1,049, while a bundle containing the new Steam Controller is priced at $1,128. The 2TB version rises to $1,349, or $1,428 when bundled with the controller.
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Both storage variants otherwise have the same core hardware. However, the 2TB model also includes additional red fabric and solid walnut faceplates alongside the standard design.
Rising RAM and storage costs changed Valve’s plans
Valve said it began sourcing Steam Machine components in 2024, when it expected PC hardware prices to follow their usual pattern and become cheaper as new technology entered the market.
That situation changed substantially over the past year, particularly around RAM and storage. Valve syas the announced prices reflect the cost of components it was able to secure during the past six months, rather than the pricing assumptions it made when development began.
The shortages have affected more than the retail price. Valve says there were periods when certain parts were unavailable at any price, reducing the number of Steam Machines it could manufacture for the initial release.
Unlike traditional console manufacturers, Valve is not heavily subsidizing the hardware to make money from software sales later. The Steam Machine is instead being priced more like a conventional prebuilt PC, with its retail price directly tied to component and manufacturing costs.
Steam Machine now costs more than a PS5 Pro
The $1,049 starting price also places the Steam Machine above every current PlayStation and Xbox console in the US, including the PS5 Pro, which currently sells for $899.99.
Valve’s system is more flexible than a traditional console, however. It runs SteamOS, provides access to a user’s existing Steam library and can function as a general-purpose Linux PC.
Its hardware includes a semi-custom six-core AMD Zen 4 processor, an RDNA 3 GPU with 28 compute units, 16GB of DDR5 system memory and 8GB of GDDR6 video memory. Valve previously claimed the machine offers more than six times the performance of the Steam Deck.
Whether that flexibility is enough to justify the price will likely depend on how well the Steam Machine performs against similarly priced gaming PCs, rather than against consoles alone.
Valve is using a randomized reservation system
Customers can register for a Steam Machine reservation until June 25. Valve will then randomize the queue instead of allocating units on a first-come, first-served basis, in an effort to reduce bot activity and discourage scalpers.
The first batch of purchase invitations is due to be sent from June 29, with more offered as additional units become available. Registrations made after the randomization deadline will be placed at the end of the queue.
Valve’s initial reservation regions cover North America, the UK, the European Union and Australia. The UAE is not currently among the listed markets, and Valve has not announced official Middle East pricing or availability.
FAQ
How much does the Steam Machine cost?
The Steam Machine starts at $1,049 for the 512GB model. The 2TB version costs $1,349, while bundles containing the Steam Controller cost $1,128 and $1,428 respectively.
Why is the Steam Machine so expensive?
Valve says rising RAM, storage and manufacturing costs made its original price target unviable. Component shortages have also restricted the number of units available for the initial launch.
Can you buy the Steam Machine in the UAE?
Not officially at launch. Valve’s current reservation regions cover North America, the UK, the European Union and Australia, with no UAE or wider Middle East availability confirmed.
