Valve says the upcoming Steam Machine offers value but won’t be subsidized

HARDWARE NEWS manhkbrady - Nov 25, 2025, 08:00

Valve recently announced its new Steam Machine, a mini PC expected to be six times more powerful than the Steam Deck handheld. A key question is whether its pricing will follow the "subsidized" console model or the standard desktop PC approach.

Traditionally, consoles are sold at a loss by the manufacturer (subsidized), with the expectation of recouping that investment through game sales, from which the console makers profit. However, significant subsidies are less common today, as the popularity of free-to-play games makes recouping large losses less guaranteed.

Valve's Pierre-Loup Graffais confirmed on the Skill Up Podcast that the company does not plan to sell its Steam hardware at a loss, meaning game sales revenue will not offset the hardware cost. While Valve aims for the Steam Machine to be a "good deal," it will not be a loss leader. Graffais added that final pricing is still being determined, as many factors are currently "fluctuating."

The Steam Machine is fundamentally a Linux-powered PC, not a traditional console, giving users the freedom to install other operating systems like Windows or use it as a non-Steam device (e.g., a mini workstation or HTPC).

Selling the Steam Machine at a loss is not viable for Valve because there is no guarantee of additional revenue, unlike the revenue streams from traditional console subscriptions (like Xbox Live or PlayStation Plus). Without such a guarantee, selling the hardware below cost would simply give buyers ultra-cheap hardware that might not be used for Steam game purchases, making it exploitable.

Therefore, the Steam Machine will be priced like a PC because it is a PC, offering more user freedom than any console. Selling it at a loss is not an option for Valve. Though a specific launch date has not yet been announced, the three new Steam Hardware products are expected to be released in early 2026. As always, be sure to visit our free games page and keep an eye out for upcoming titles and special offers.

Valve touts Steam Machine value but confirms it won’t lower the cost

manhkbrady