Steam Machine Price Shock: Analyst Predicts $699 Tag for Valve’s New PC Console

Valve’s upcoming Steam Machine will likely carry a $699 price tag. This prediction comes from the popular tech analysis channel Linus Tech Tips. The channel based its forecast on a detailed breakdown of the device’s confirmed hardware components. This price point positions the machine firmly as an entry-level PC, not a subsidized gaming console.

The estimate has sparked significant debate among gamers and industry watchers. It places the Steam Machine well above the current cost of major consoles like the PlayStation 5. Valve itself has stated the device will be “priced like a PC,” a statement that now carries new weight.

Hardware Costs Drive the High Price Estimate

Linus Tech Tips built its cost model by sourcing the exact parts Valve specified. The analysis accounts for the custom AMD APU, 16GB of DDR5 memory, and a 1TB NVMe SSD. According to the channel’s findings, these components alone push the bill of materials toward the $600 range before other costs are factored in.

Adding the chassis, power supply, and the included Steam Controller brings the total higher. Valve has also confirmed the machine will include a dedicated antenna for connecting up to four wireless controllers. This feature, while adding value, contributes to the final manufacturing cost.

Conflicting Predictions and Market Realities

Not all analysts agree with the $699 forecast. Another trusted source, Moore’s Law Is Dead, previously suggested a lower price range between $425 and $500. However, that prediction was made before a recent global RAM shortage disrupted supply chains and drove memory prices upward.

The final cost will heavily depend on Valve’s procurement strategy. If the company secured long-term component contracts before the price surge, it could afford a lower retail price. Valve’s stance on profit margins per unit remains the biggest unknown factor influencing the final number.

A quick knowledge drop for you

Why is the Steam Machine predicted to be so expensive?

Analysts point to its PC-grade hardware. Components like the custom AMD chip and fast DDR5 memory are costly. Valve is also not expected to subsidize the price like traditional console makers.

How does this price compare to a PlayStation 5?

The PlayStation 5 currently retails for $499. The predicted $699 Steam Machine price is about $200 more. This gap highlights the different business models between a closed console and an open PC platform.

What do you get for the extra money?

You get a fully functional PC. This means free online multiplayer, access to Steam sales, and the ability to run any Windows or Linux software. It offers more flexibility than a standard game console.

When will we know the official price?

Valve has not announced a specific date. Industry observers expect a formal reveal in early 2026. The company is likely finalizing contracts and assessing the volatile hardware market.

Could the final price be lower than $699?

Yes, it is possible. If component prices fall or if Valve decides to accept a very slim profit margin, the cost could decrease. However, most current analysis points to a price near the high end of expectations.