Hardware Pricing
Ongoing coverage on Hardware Pricing.
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Xbox Series X/S Prices Will Increase Again From August 1st
Microsoft's Xbox division has announced another price increase for the Xbox Series X and Series S consoles, effective August 1st. The company cited rising component and storage costs, which have more than doubled for consoles, as the primary reason for the hikes. To mitigate the impact, Xbox is introducing new Buy Now, Pay Later financing options and promoting trade-in programs for previously played consoles.
Morning Tech Bits
SpaceX's upcoming Initial Public Offering is reportedly causing issues for retail investors. Separately, the article questions the high price point of the Steam Machine, suggesting Valve faced challenges with RAM manufacturers.
The one thing Valve would change about the Steam Machine? 'Make it cheaper'
Valve engineers Yazan Aldehayyat and Pierre-Loup Griffais admitted that the primary thing they would change about the Steam Machine is its high price, with the cheapest model costing $1,049. They attributed the cost to difficulties in securing components like RAM due to market conditions. Valve also confirmed that users can now install SteamOS on non-Valve hardware, including PCs with AMD GPUs.
Well, that explains the expensive Steam Machine: Valve can't negotiate with RAM companies for better prices because "if we say no, then they never talk to us again"
Valve engineer Pierre-Loup Griffais explained that the high price of the Steam Machine is due to RAM manufacturers refusing to negotiate, leaving Valve with limited options. This issue is exacerbated by generative AI companies consuming large amounts of RAM, driving up prices for all consumers and leading console manufacturers like Microsoft, Sony, and Nintendo to increase their own hardware prices.
Valve Admits That it Didn’t Have Bargaining Power With RAM Companies for Steam Machine
Valve engineer Pierre-Loup Griffais revealed that the high cost of the Steam Machine was partly due to a lack of bargaining power with memory manufacturers. These companies dictated prices with no room for negotiation, a situation exacerbated by the demand from AI data centers. Griffais also explained Valve's commitment to an open PC ecosystem, which prevented them from subsidizing the hardware cost like a console.
Steam Machine Price in the Philippines: PHP Cost Breakdown — Too Much Gaming | Video Games Reviews, News, & Guides
This article analyzes the potential cost of Steam Machines in the Philippines, converting US prices to Philippine Pesos and estimating them to range from ₱64,000 to ₱87,100. It highlights that these prices are higher than current PlayStation 5 systems and discusses factors like supply chain issues and the overall value proposition compared to building a custom PC or buying existing consoles.
Valve is Getting a “Fat” Profit Margin on Steam Machine – Rumor
Industry insiders Kepler and Moore's Law is Dead suggest Valve may be taking a significant profit margin on the Steam Machine, potentially higher than admitted. This speculation arises from the device's high price point, which some argue is not justified by its performance compared to custom-built PCs. Valve has stated they cannot subsidize hardware costs due to the open nature of the PC platform.
Steam Machine Could Have Been Significantly Cheaper, Reveals Valve
Valve engineers revealed that the Steam Machine could have been priced up to 33% cheaper, potentially around $750, similar to the Steam Deck OLED before its recent price increase. Despite higher costs, the Steam Deck OLED sold out quickly, and Valve is implementing randomized reservations for the Steam Machine to combat bots and scalpers.
Steam Machine Couldn’t be Subsidized Because Valve Values PC’s Openness
Valve explained that the Steam Machine could not be subsidized due to Valve's commitment to PC's open ecosystem, preventing them from recouping costs through game sales or subscriptions. The company emphasized that the PC platform's strength lies in its openness, allowing users to choose hardware based on their personal tradeoffs, contrasting with the more closed console model. Factors like ongoing memory and storage shortages also contributed to the higher price point.
The Steam Machine's price has finally been revealed, and it's not cheap
Valve has revealed the pricing for the Steam Machine, with the cheapest 512GB model costing $1,049 and the 2TB model with a controller priced at $1,428. Valve engineer Yazan Aldehayyat stated the price is significantly more than initially planned, attributing it to rising component costs, similar to recent Steam Deck price increases.
Steam Machine price announced and even Valve admit it’s too expensive
Valve has announced the pricing for its Steam Machine console, with the cheapest model costing £879. The company attributes the high price to increased costs of memory and storage components, exacerbated by AI data center demand. This price point is significantly higher than anticipated and even surpasses the PlayStation 5 Pro, potentially limiting the Steam Machine's appeal to enthusiasts.
Valve says it isn't subsidizing the Steam Machine's $1050 price because of its 'religious' refusal…
Valve has explained its decision not to subsidize the Steam Machine's high $1049 price, citing a commitment to its belief in open ecosystems and free markets. The company argues that subsidizing hardware would contradict this philosophy, unlike traditional console manufacturers who often sell hardware at a loss to drive profits through software and services.
The Internet Has Some Thoughts On The Steam Machine’s $1,000+ Price
Valve announced the Steam Machine will launch on June 30 with a minimum price of over $1,000, drawing significant negative reactions online. Many questioned the high cost, especially compared to building a custom PC, and speculated about future console pricing trends.
Steam Machine pricing starts at $1,049 for 512GB model
Valve's Steam Machine, a SteamOS-based console/PC hybrid, is now available for pre-order starting at $1,049 for the 512GB model. The pricing reflects its hybrid nature and is influenced by AI-driven component shortages. Valve aims for an open ecosystem, unlike the traditional console model of selling hardware at a loss.
Steam Machine is $1,049 because it "doesn't align with our beliefs" to subsidize the cost
Valve has priced the Steam Machine at $1,049, stating that subsidizing hardware costs goes against their belief in open ecosystems. The company attributes the high price to manufacturing costs, component prices, and tariffs, rather than a desire for profit. This pricing strategy is contrasted with industry trends of potential $1,000 console prices and mass layoffs within the games industry.
The Steam Machine’s Original Price Would’ve Given Valve’s Machine A Much Better Shot
Valve's Steam Machine faced significant price increases due to a global RAM crisis, pushing its entry-level model over $1,000. This high cost makes it a luxury item that struggles to justify its price compared to current-generation consoles like the PlayStation 5, which offers similar or better performance at a lower cost.
"It's too dangerous for us to speculate": Valve don't know if Steam Machine prices will drop in the future, after admitting that "some people are going to priced out"
Valve has opened reservations for the new Steam Machine, with prices starting at £879 / $1049 / €1039 for the base 512GB model. Valve designers Lawrence Yang and Yazan Aldehayyat attribute the high cost to ongoing component shortages and pricing issues, stating that the current prices reflect manufacturing realities. They acknowledge that some consumers will be priced out but believe it still offers good value compared to other market options, while declining to speculate on future price drops due to market uncertainty.
Valve Reveals Steam Machine Prices at Over $1000
Valve has revealed the pricing for its Steam Machines, with the cheapest model starting at $1049 USD for a 512GB SSD configuration. Higher-end models with 2TB SSDs and controllers range up to $1428 USD. Valve cited inflated prices and component shortages, partly due to AI data centers, as reasons for the high costs.
Valve's Steam Machine starts at $1,049 with 512GB storage and no controller
Valve's Steam Machine will be priced at over $1,049 for the model featuring 512GB of storage. Notably, this price point does not include a controller, further increasing the total cost for potential buyers.
Steam Machine Impressions: A Tiny Box With Big Trade-Offs
Valve's Steam Machine, designed as a compact living room PC, is launching with mixed impressions regarding its performance and price. While praised for its quiet operation and small form factor, its graphical capabilities are noted to be weaker than current-generation consoles like the PlayStation 5 and Xbox Series X, especially at higher resolutions. Priced starting at $1,049, it is positioned as an entry-level gaming PC rather than a direct competitor to consoles.
