During a recent WAN Show livestream, Linus Sebastian of Linus Tech Tips recounted a revealing exchange at a Valve hardware event regarding the pricing of the upcoming Steam Machine. When Linus mentioned $500 as a reasonable price point, Valve’s representatives’ response was noticeably muted, signaling that such a price was highly unlikely.
Linus explained that while no one explicitly said the price would be higher, the energy in the room suggested that $500 was an optimistic target more than a concrete plan. Valve plans to price the Steam Machine comparable to a mid-range gaming PC rather than a console subsidized by software sales and subscriptions like PlayStation or Xbox.
Why Valve’s Pricing Approach Differs
Unlike Sony and Microsoft, which absorb hardware costs and recoup through licensing fees and online subscriptions such as PlayStation Plus and Xbox Game Pass, Valve primarily earns revenue from Steam game sales. This model doesn’t financially justify a loss-leading console price.
Consequently, the Steam Machine is expected to carry a premium price that aligns more with the production costs of a capable gaming PC, which Linus estimates could range between $600 and $700 or possibly more depending on configuration. That would make it significantly more expensive than the PlayStation 5 digital edition at $450 or the base Xbox Series X.
Specs and Market Positioning
The Steam Machine will feature a six-core AMD Zen 4 CPU paired with RDNA 3 graphics, offering performance targeted roughly at PlayStation 5 capabilities. It will come with 16GB of RAM and NVMe storage options from 500GB to 2TB, housed in a compact 6-inch cube form factor designed for the living room.
Valve’s open-source SteamOS will allow users to install third-party software and even Windows, offering flexibility unmatched by traditional consoles. However, this openness may not appeal to mainstream console buyers prioritizing simplicity and plug-and-play experiences.
Community and Market Reaction
Many gamers reacted with skepticism or disappointment to the notion of a $600-plus Steam Machine, worrying it occupies a challenging price bracket. It could deter casual buyers while facing fierce competition from more affordable consoles and customizable traditional gaming PCs.
Others appreciate Valve’s unique positioning, noting that the Steam Machine is not meant to be a conventional console but rather a compact living room PC with Steam’s ecosystem baked in. Fans of PC gaming and those wanting an open platform might find value in the premium device despite the higher cost.
Conclusion
Linus Tech Tips’ candid account sheds light on Valve’s cautious pricing strategy for the Steam Machine. While console buyers may prefer familiar price points under $500, Valve aims for a market that values openness and performance, even if it means a steeper price tag. Whether this will prove sustainable remains to be seen as the Steam Machine edges closer to its Spring 2026 release window.