Steam Machine Could Revolutionize the Industry — Analyst

Alinea Analytics analyst Rhys Elliott believes the new offering could do more than unsettle the industry — it might redefine how people think about gaming. He stresses that success will depend on two crucial factors: price and genuine audience interest.

Elliott reminds us that a significant share of Steam users still rely on older components and are unable to move to modern hardware because of steep costs. For that reason, he argues, a Steam Machine could answer this audience’s needs.

According to the analyst, given strong price sensitivity the device needs to be priced below $500; otherwise it will be perceived as an “expensive niche PC.” He sees $400 including a controller as the sweet spot — a move that would send a clear signal to console makers who have raised their prices.

Elliott believes a $400 price would help lure console owners, but he stresses that Valve must clearly articulate the device’s purpose, typical use cases, and why it deserves attention. Without that messaging, demand will not materialize.

Source: iXBT.games