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Valve just recently announced a new line of hardware, including a console-like Steam Machine. It’s a little six-inch cube-like device that plays PC games on your TV. Who wants to do that and how big is the market? According to Alinea Analyticsabout 20% of Steam Deck users–or a few million people–dock their system and play games on a TV, and this shows there is a “clear appetite” for a device like the Steam Machine that offers a “couch-friendly PC gaming experience.”
“So partially, the Steam Machine is for current Steam users. It’s an attractive second device for PC gamers who want a living-room gaming setup without building a full rig or investing in another ecosystem,” Alinea’s Rhys Elliott said.
He went on to say that the Steam Machine nicely slots into Valve’s ambition to “make PC gaming more accessible and flexible.” With the Steam Machine, users don’t have to worry about the hassle of upgrading components because everything is already in the box.
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“Versus traditional gaming PCs, there’s no tinkering, fewer cables, and no drivers. Best-ish of both worlds,” Elliott said.
“So obviously, the Steam Machine is not solely for hardcore PC players but also for curious console players who want the freedom and affordability of PC gaming without the complexity,” he said. “For younger consumers, the Steam Machine could serve as an on-ramp to PC gaming, bridging the gap between consoles and the open PC ecosystem. Streamer partnerships could help there.”
Also in the post, Elliott said the Steam Machine may eat Xbox’s lunch. He pointed out how Xbox is already pushing players to PC-like devices like the ROG Xbox Ally X. Microsoft’s next-gen console is rumored to be “essentially a PC,” Elliott said, adding that, “Xbox seems to be abandoning the console hardware.” Against this backdrop, Elliott said, “Valve just built the bridge faster and might have offered an enticing console-like PC on-ramp for the disgruntled Xbox fans. And there are a lot of those.”
“If successful, the Steam Machine could eat into Xbox’s core proposition: console-like simplicity backed by PC-like openness,” Elliott said.
Another critical component of the Steam Machine regarding its sales potential will be its priceand Elliott said the “sweet spot” for the device would be $400 for a bundle that includes the system and a controller. If it’s more than $500, it runs the risk of “being perceived as an expensive niche PC,” Elliott said.
Selling the Steam Machine for $400 would “really send a message, as console manufacturers have been raising their prices. A digital PS5 costs $499, while the Xbox Series X Digital is $599,” Elliott said.
Officially, Valve has not announced a price for the Steam Machine, the Steam Frame, or the new Steam controller. The company is aiming for the Steam Machine to land at a competitive and affordable price pointValve has said.
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