Steam Machine may target $699 price point

There has been a lot of speculation around the cost of Valve's upcoming hardware devices, with most of it centred on the Steam Machine after learning that it will be priced . As it turns out, the device might be a bit more competitive with current console pricing than initially thought. 

After a couple of price hikes in recent years, the PS5 Standard edition now costs $549.99 and an Xbox Series X costs a bit more at $649.99. The PS5 Pro goes a step further and is currently priced at $749.99 outside of holiday sales periods like Black Friday.

In a new video, LinusTechTips crunches the numbers and discovers that building a comparable PC to the Steam Machine could cost as little as $600, however, when taking into account recent rises in retail costs for components like RAM and SSDs, the current price falls between $800 and $900, as the AI boom has caused a supply and demand issue impacting even consumer electronics.

When taking into account the cost, Valve's direct-to-consumer model and lack of need for significant profit margins on the device, due to the company's cut of every sale on the Steam Store, they estimate that the Steam Machine will target a $699.99 introductory price point. This is a lot closer to current console prices than initially thought.

Of course, this price point assumes there are no further changes in the market. Right now, the fluctuation in the memory and SSD markets is believed to be the primary reason Valve has not yet announced a finalised price tag for the Steam Machine. It is hard to finalise a price on something when the goal posts are being moved on a day-to-day basis.

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KitGuru Says: If the Steam Machine can beat the PS5 Pro in price, then it stands a much better chance of appealing to an enthusiast gaming audience.

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