Why $700 could be a "death sentence" for the Steam Machine

February 7, 2026
Why $700 could be a "death sentence" for the Steam Machine

Here's something that caught my attention — if Valve bumps the Steam Machine’s price to $700, it might actually be the end of it. Kyle Orland from Ars Technica highlights how rising costs for key components like RAM and storage are forcing Valve to rethink pricing. Now, here's where it gets interesting: analysts are split on whether Valve will pass those costs directly to consumers, but the reality is, the current component shortages and price hikes make it a real gamble. As Orland points out, the company’s already adjusting its schedule and pricing strategies — so a $700 price tag could scare off the very gamers it’s trying to reach. And get this — if it becomes too expensive, the Steam Machine might not just struggle; it could be dead in the water. So what does this mean for gamers and tech fans? Keep an eye on those price tags — because even a small bump could be a death sentence for Valve’s hardware plans.

After writing two November stories analyzing price expectations for Valve's upcoming Steam Machine, I really didn't think we'd be offering more informed speculation before the official price was revealed. Then Valve wrote a blog post this week noting that the "growing price of... critical components" like RAM and storage meant that "we must revisit our exact shipping schedule and pricing" for the living room-focused PC gaming box.

We don't know exactly what form that "revisiting" will take at the moment. Analysts who spoke to Ars were somewhat divided on how much of its quickly increasing component costs Valve would be willing (or forced) to pass on to consumers.

"We knew the component issue was bad," DFC Intelligence analyst David Cole told Ars. "It has just gotten worse. "

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Audio Transcript

After writing two November stories analyzing price expectations for Valve's upcoming Steam Machine, I really didn't think we'd be offering more informed speculation before the official price was revealed. Then Valve wrote a blog post this week noting that the "growing price of... critical components" like RAM and storage meant that "we must revisit our exact shipping schedule and pricing" for the living room-focused PC gaming box.

We don't know exactly what form that "revisiting" will take at the moment. Analysts who spoke to Ars were somewhat divided on how much of its quickly increasing component costs Valve would be willing (or forced) to pass on to consumers.

"We knew the component issue was bad," DFC Intelligence analyst David Cole told Ars. "It has just gotten worse. "

Read full article

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