The Steam Machine was supposed to cost around $750, but the crisis threw Valve’s plans into disarray

The company refused to sell the device at a loss, unlike typical console manufacturers.

Valve addressed criticism regarding the high price of its new Steam Machine. The base model, which includes a 512 GB drive and no controller, costs 1049 dollars. The premium version, featuring 2 TB of storage and a Steam Controller, costs 1428 dollars.

These prices surprised many fans who expected a more affordable device. Valve staff acknowledged the unexpected cost but cited current market pressures regarding component pricing.

Valve engineer Pierre-Loup Griffais told Gamers Nexus that memory and storage suppliers dictate terms to manufacturers. Suppliers offer limited monthly volumes at fixed prices, and refusing these deals risks losing future supply access.

In an interview with IGN, engineers Pierre-Loup Griffais and Yazan Aldehayyat suggested the Steam Machine faces the same market factors that drove up the price of the Steam Deck OLED. That portable system recently saw price increases, with the 512 GB model rising from 549 to 789 dollars and the 1 TB model increasing from 649 to 949 dollars.

Accounting for a 43 to 46 percent cost increase, a standard Steam Machine might have cost between 718 and 734 dollars without the current supply crisis. The device would still cost more than a PlayStation 5, but the gap would be smaller.

The competitive standing of the new device remains uncertain. Early benchmarks show the Steam Machine trails the performance of current Sony consoles. This positions the hardware as a niche product for PC gamers who want a console-style form factor without leaving their existing game library behind.