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Steam Machine’s Hidden Cost: How DRAM Shortages Skewed Pricing

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Valve’s Steam Machine faces a launch window scarred by the DRAM shortage. A former engineer, Pierre‑Loup Griffais, revealed that the console never intended to be cheap. In an IGN interview, he said the price gap caused by the shortage mirrors the hike Valve applied to the Steam Deck for early adopters in the market today.

If the DRAM crisis had been absent, the entry‑level Steam Machine could have launched for only $730‑750. That price sits just below the current PS5 Pro at $899.99 and close to the base PlayStation 5, making the hybrid console a surprisingly competitive option for budget‑savvy gamers in a market crowded with premium hardware for players.

The Steam Machine’s openness means users can install Windows or other operating systems, stripping Valve of the incentive to subsidize hardware as Xbox or PS5 do. This design choice may dampen early sales, yet offers a versatile platform that can double as a home console or a full‑featured desktop in a competitive gaming landscape today.

With the DRAM crisis easing, Valve could revisit pricing to make the Steam Machine a viable alternative to mainstream consoles. Until then, the device remains a niche offering that highlights the tension between open hardware and market viability.