Steam Machine Price Shocks: Valve Refuses to 'Sell at a Loss' Like PS5 and Others
Introduction to Steam Machine and Its Official Price
Valve, a company known for various innovations in the gaming world, has just announced the official price for the Steam Machine, a gaming device designed for living room use. However, the price offered is not cheap. For the 512GB storage model, the Steam Machine is priced starting at USD 1,049, which is approximately Rp 17.2 million. If you want the 2TB storage variant, you will need to pay more, around USD 1,349. Additionally, if you want the Steam Controller, you need to add USD 79 for each chosen configuration.
Available Variants for Gamers
Valve offers several Steam Machine variants to meet gamers' storage needs. Here are some details of the four available configurations:
- 512GB Model: USD 1,049 (around Rp 17.2 million)
- 2TB Model: USD 1,349
- Steam Controller: additional USD 79
Although the Steam Machine is offered as a practical alternative to consoles that can connect to a TV, the price is much higher compared to current consoles on the market.
Comparison with Other Consoles
Interestingly, despite the Steam Machine's much higher price, its performance is only comparable to the PlayStation 5. This has led many to wonder why Valve did not adopt the "sell at a loss" strategy commonly used by other console manufacturers. In the console world, it is common for companies to sell hardware below production cost and then cover losses through subscription services or exclusive game sales.
Valve's Philosophy in Building an Ecosystem
Valve has a different view regarding this business model. In an official statement to The Verge, Valve emphasized that they do not want to subsidize their hardware. According to them, subsidizing hardware contradicts the fundamental principle of creating a healthy and open ecosystem. They believe that the open PC ecosystem has been a major driver of technological innovation for years.
Valve stated, "You should not feel obligated to buy Valve hardware. You have the right to decide which device best suits your needs in terms of price, performance, form factor, and other factors." In other words, Valve wants to give users the freedom to choose devices that match their preferences.
Production Challenges and Component Crisis
However, Valve's journey has not been smooth. The global memory and storage supply crisis has significantly affected the company's plans. Initially, the Steam Machine was planned to launch in early 2026 alongside the Steam Controller and Steam Frame VR headset. However, delays were unavoidable. Lawrence Yang from Valve confirmed that the Steam Machine's selling price is an accumulation of component costs and assembly expenses, without significant profit margins.
Additionally, Pierre-Loup Griffais, a colleague of Yang, revealed that Valve cut profit margins more aggressively compared to their previous product, the Steam Deck, to keep prices close to cost. Unfortunately, the component crisis also impacted the number of Steam Machine units ready for launch, with only about two-thirds of the initial target produced. Although Valve was once pessimistic about their ability to produce the device in significant quantities, the current Steam Machine launch can be considered a "small miracle."
Source: https://inet.detik.com/consumer/d-8543627/harga-steam-machine-bikin-melongo-valve-ogah-jual-rugi-ala-ps5-dkk
