Earlier this week, Valve unveiled a major increase in pricing for its Steam Deck OLED lineup. In the UK, shoppers considering the company’s heavier 1TB Steam Deck OLED model saw the cost jump by more than £200, rising from £569 to £779. At the same time, the 512GB Steam Deck OLED variant became £170 more expensive, going from £479 to £649.
Like other companies that have also announced higher prices for their own equipment, including Sony and Nintendo, Valve said the change is driven by rising RAM expenses and ongoing shortages affecting storage. “These updated prices reflect the current status of component expenses and other global logistical challenges facing the industry as a whole,” Valve added. The Steam Deck hardware itself remains unchanged.
Still, what does this mean for the Steam Machine—Valve’s upcoming console/PC hybrid that will let users play PC games on a television or via a traditional gaming setup? Valve has not published pricing for the Steam Machine yet, though it did note in November that the figure would be “more in line with what you might expect from [the] existing PC market”. Sadly, the PC market continues to climb in cost, and that seems even true as I write this.
Speaking with Eurogamer, analyst Mat Piscatella commented that pricing and availability issues tied to components—particularly RAM and storage—“are exceptionally dynamic at this moment,” which makes it hard to name a firm number for what Valve might charge for the Steam Machine. “My conjecture (and really, everything here is essentially a conjecture at this point given how erratically this market is operating) is that yesterday’s increase in Steam Deck prices indicates that we will likely witness four-digit pricing for the Steam Machines when (or if, as the situation may be) pricing and launch timing are revealed,” Piscatella said. “That said, I have little confidence in this projection. If I had to take a guess, I’d set a $1,200 US launch price for the base Steam Machine version right now.”
Even so, Piscatella pointed out he “wouldn’t be surprised at all” if the real price ends up noticeably higher—or even a bit lower—than that. “This market is behaving unusually, meaning multiple outside forces are influencing it, and that doesn’t allow for high-confidence predictions,” he continued. “We’re essentially dealing with guesswork here, and my crystal ball hasn’t been working well for most of this year.”
“And I don’t believe the possibility of price increases in video game hardware is limited to Valve, of course. We might see further price hikes across both PC and Console products, depending on what happens in the broader economic picture.”
Piscatella also addressed the ongoing cost-of-living crisis. “This is happening while prices for everyday essentials like food and fuel are going up,” he concluded. “As consumers shift more of their spending toward those necessities, there’s typically less left for optional purchases like video games. The kind of strain we’re seeing right now is quite distinct—and unlike anything we’ve faced before.”
Chris Dring from The Game Business made a similar observation, calling the current component price crunch “a substantial issue for the entire video game industry.” He noted that both PCs and consoles are dealing with shortages, which leaves him feeling fairly doubtful about what Valve may set for Steam Machine pricing.
“When households are under financial pressure, the cost of these devices will almost certainly affect the expansion of the broader market and everyone trying to operate within it—certainly beyond mobile,” Dring told Eurogamer. “It could also mean this generation lasts longer, as big companies try to work through the situation. Another major worry is what happens to people whose consoles or Steam Decks break and need to be replaced. Will they be able to afford a new one?”
With multiple major video game releases expected later this year, especially Grand Theft Auto 6, Dring said this could be “a standout year” for consoles. “While this doesn’t apply to the Steam Deck, GTA 6 is likely to attract both new players and returning ones, and they’ll be surprised by the prices of the devices needed to play it,” he explained.
“That might create a short-term uptick for game streaming, since some people could access games without paying the upfront hardware cost. Even so, streaming providers aren’t insulated from these price rises either.”
For more perspectives on this issue, check out Bertie’s feature: “It’s a perfect storm of unpreparedness, panic, and greed” – RAM prices are surging, what does it signify for gaming?