Valve could sell the Steam Machine at a loss, and that would be a win for everyone

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Valve is still settling on a final Steam Machine price, but it could end up selling the mini PC at a loss. That's if rumors surrounding the storefront giant using the strategy short-term ring true, but if it does take the hit, it could help inspire console makers to prioritize lower MSRPs to ensure players can actually afford systems.

In a report by Insider Gaming, Executive Editor Mike Straw says that, by his understanding, "Valve is getting closer to confirming everything" Steam Machine-related. That suggests we'll get a launch price and release date soon, but he also claims Valve has "been going back and forth internally on pricing and whether they would be willing to take a loss on the cost, at least in the short term."

Straw caveats that "it's unclear if a decision has been made", so don't get too hyped up about affordable Steam Machine pricing just yet. That said, he adds that, whatever the decision, the "internal belief is that an announcement on a release is getting closer," and that's backed up by all the recent controller leaks.

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On that note, a now-deleted post by 4Gamer states the Steam Machine controller will arrive on May 4. I've already expressed why launching the gamepad before the mini PC is a no-brainer, but thanks to a review highlighted by Vice that leaked ahead of schedule, we now know it'll likely cost $99 (you can still watch it via Streamable).

Yes, nearly $100 is far from the Steam Controller MSRP I was expecting, but I reckon it backs up the idea of a cheaper Steam Machine. If Valve does decide to sell its mini system at a loss, selling accessories like the gamepad for more could help recoup some costs. Traditionally, console makers sell hardware at a loss to get players on their platforms who will then buy more profitable games and add-ons, and that could be the plan for the pad.

When you think about it, the Steam controller makes for a perfect way to reach players who aren't invested in the storefront. Sure, most players with a gaming PC will primarily use Steam accounts, but some out there will be more using Xbox Game Pass or even a DRM-free platform like GOG. If the Steam Controller proves to be an experience-enhancing hit thanks to perks like compatibility aids like Steam Input, that could inspire people to adopt the platform or even eventually swap their rig for a Machine down the road.

All of this starts to sound like a convincing master plan when you consider Project Helix, the current name for the next-gen Xbox that plans to run PC and console games. If Microsoft's next system also ends up being a tiny rig, Valve will have a chance to make money from that player base via the controller, and aiming for $99 should yield something profit-shaped.

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Of course, taking any and all Steam Machine and controller rumors with a big grain of salt is mandatory. It sounds like Valve will be crunching numbers and deliberating on MSRP right up to its next big reveal, but if it does decide to keep high hardware prices at bay by covering the losses, it could benefit PC and console players alike. At the same time, Sony has pulled away from releasing PS5 exclusive games on PC, so it's hard to say whether it'll rise to the pricing competition or stay in its own expensive little bubble where mid-gen price hikes have already made it to the table.

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Phil HaytonHardware Editor

Phil is the Hardware Editor at GamesRadar+ who specializes in retro console setups, choosing the latest gaming handhelds, and navigating the choppy seas of using modern-day PC hardware. In the past, they have covered everything from retro gaming history to the latest gaming news, in-depth features, and tech advice for publications like TechRadar, The Daily Star, the BBC, PCGamesN, and Den of Geek. In their spare time, they pour hours into fixing old consoles, modding Game Boys, exploring ways to get the most out of the Steam Deck, and blasting old CRT TV visuals into their eye sockets.

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