Valve Launches Steam Machine Gaming PC at Higher Price Due to Component Costs
The company cites rising prices for RAM and storage, leading to a higher-than-anticipated retail price for its console-like gaming computer.
Valve has released its Steam Machine gaming computer with a retail price of $1,049 in the U.S. and £879 in the UK, attributing the cost to escalating component expenses. The company stated in a blog post that its initial price target was no longer feasible due to recent increases in hardware costs.
This pricing reflects a broader trend across the electronics industry, where manufacturers are raising prices to offset rising costs for components like memory and storage. Earlier in 2026, Valve had already increased the price of its handheld device, the Steam Deck, by 40% for similar reasons. The company had previously announced a price of £85 for its new Steam Controller.
The Steam Machine is now available as a bundle with the Steam Controller and a 512GB storage option for £938. A 2TB version of the Steam Machine will cost £1,149, or £1,208 when bundled with a controller.
Unveiled in November, the Steam Machine is described as a PC optimized for gaming that also functions as a console. It is considered a successor to the original Steam Machine launched in 2014, which did not gain significant market traction against established console makers like Sony, Nintendo, and Microsoft.
Valve indicated that when they began sourcing components for the current Steam Machine in 2023, they expected costs to decrease over time, a typical trend in PC hardware. However, over the past year, significant and rapid cost increases, particularly for Random Access Memory (RAM) and storage, have altered this expectation.
Piers Harding-Rolls of Ampere Analysis noted that his firm had predicted a starting price between $700 and $800 for the Steam Machine. He stated that the rising costs have prevented Valve from offering a more accessible price point. With its price point reportedly 75% higher than a PlayStation 5 console, the Steam Machine is expected to be a niche product, though high-end gaming PCs typically command higher prices than consoles, even if game costs can sometimes be lower.