Steam Machine expected to cost $700, reflecting Valve's modern PC pricing comments

Linus from Linus Tech Tips guesses that Valve's new Steam Machine could cost the same as a PlayStation 5 Pro when the mid-gen system originally launched.

Linus from Linus Tech Tips built a PC that mimics the Steam Machine's performance profile to give an idea of how much Valve's new mini PC could (comparatively) cost. Linus speculates that Valve's choice to go with a semi-custom chip for the Steam Machine and not a fully customized one like with the Steam Deck could indicate that Valve may not be targeting 10 million unit sales with the device--but that's based on reports involving AMD and Xbox's purportedly-canceled native handheld.

"Valve cares a lot about the perceived value of the experience using the Steam Machine, not just the raw specs," Linus said.

• Read more: Valve says Steam Machine price won't be subsidized, closer PC pricing, definitely won't be $499
• Read more: Valve says third-party Steam Machines may come with different levels of hardware
• Read more: Valve open to a Steam Machine Pro, but mid spec takes focus for now

This actually matches up with some of the comments made by Valve engineer Pierre-Loup Griffais.

In a recent interview with the Friends Per Second podcast, Griffais said that the price would also reflect the overall experience that the Steam Machine offers, including console-like features such as instant wake and startup with a button press from the new Steam Controller.

Linus goes on to break down the Steam Machine's cost, comparing the build cost of their experimental PC against the current market, speculation around AMD's contract demands, and internal analysis from industry experts.

The custom-built PC cost LTT about $910 to put together, which would have originally cost around $600 if all the parts were on sale and readily available at their historically cheapest prices. That $910 cost could drop down to around $810 if consumers choose the cheapest options of those components.

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Those are retail costs, though. What about multi-million production contracts? Surely Valve gets a wholesale discount.

With this in mind, LTT predicts that the Steam Machine could be priced at up to $699.

"Chatting with industry sources, it's estimated that there is as little as 10% net profit in PC parts, which would put our estimated cost somewhere between $700 and $750. With that said, Valve benefits from a direct-to-consumer model, meaning they get to take both the brand and the retailer margins."

"In today's market, I still don't think they're going to get costs under $600 to $650."

"Valve has told us that it wants its hardware business to be sustainable. But what does that mean? I think it means $699 USD if there's no change to the market."

Valve has said that it won't take a loss on the Steam Machine. This is predictable, because no console hardware makers take a loss on their respective systems except for Microsoft, and decades of unprofitable Xbox console production has significantly impacted the profitability of the Xbox games division.

Valve wants to avoid this kind of situation, hence the "sustainable" comment given to Linus and the other comments that the Steam Machine will be priced like a similar-specced prebuilt PC.

Valve won't reveal Steam Machine pricing until early 2026, but with RAM and SSD prices the way they are, it may be tough to commit

Steam Machine Full Specifications

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