price

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Valve’s Steam Machine looks like a console, but don’t expect it to be priced like one

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After Valve announced its upcoming Steam Machine living room box earlier this month, some analysts suggested to Ars that Valve could and should aggressively subsidize that hardware with “loss leader” pricing that leads to more revenue from improved Steam software sales. In a new interview with YouTube channel Skill Up, though, Valve’s Pierre-Loup Griffais ruled out that kind of console-style pricing model, saying that the Steam Machine will be “more in line with what you might expect from the current PC market.”

Griffais said the AMD Zen 4 CPU and RDNA3 GPU in the Steam Machine were designed to outperform the bottom 70 percent of machines that opt-in to Valve’s regular hardware survey. And Steam Machine owners should expect to pay roughly what they would for desktop hardware with similar specs, he added.

“If you build a PC from parts and get to basically the same level of performance, that’s the general price window that we aim to be at,” Griffais said.

The new comments follow similar sentiments relayed by Linus Sebastian on a recent episode of his WAN Show podcast. Sebastian said that, when talking to Valve representatives at a preview event, he suggested that a heavily subsidized price point would make the Steam Machine hardware into “a more meaningful product.” But when he suggested that he was imagining a console-style price in the range of $500, “nobody said anything, but the energy of the room wasn’t great.”

Forget about $500

Based on these comments, we could start estimating a potential Steam Machine price range by speccing out a comparable desktop machine. That would likely require building around a Ryzen 5 7600X CPU and Radeon RX 7600 GPU, which would probably push the overall build into the $700-plus range. That would make the Steam Machine competitive with the pricey PS5 Pro, even though some estimates price out the actual internal Steam Machine components in the $400 to $500 range.

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Microsoft raises Xbox console prices for the second time this year

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Here we go again

Higher than usual inflation can help explain some of the nominal price increases for the oldest Xbox consoles affected by today’s price hikes. The $300 for an Xbox Series S at launch in November 2020 is worth roughly $375 in August 2025 dollars, for instance. And the $500 for an Xbox Series X in 2020 is now worth about $625.

But the particularly sharp price increases for more recent Xbox configurations can’t really use that inflation excuse. The disc-drive-free Digital Xbox Series X Digital and 2TB “Galaxy Special Edition” are now a whopping 33 percent more expensive than they were at launch in October 2024. A year’s worth of inflation would account for only a small fraction of that.

Even accounting for inflation, though, the current spate of nominal console price increases goes against a near-universal, decades-long trend of game console prices dropping significantly in the years following their launch. Those days seem well and truly gone now, as console makers’ costs remain high thanks in part to current tariff uncertainty and in part to the wider slowdown of Moore’s Law.

We’ll see just how much the market can bear aging console hardware that increases in price over time rather than decreases. But until and unless consumers start balking, it looks like ever-increasing console prices are here to stay.

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