Valve won't subsidize Steam Machine price to protect open ecosystem

The Steam Machine has launched with a starting price of $1,049. Valve acknowledged the price is higher than hoped due to an ongoing AI-driven supply crisis in computing components, but it says subsidizing the hardware would conflict with its belief that healthy ecosystems are built on openness.

"If there’s anything we’re religious about at Valve, it’s our belief that open systems are better in the long run," the company said. Valve contrasted its stance with the traditional console model of selling hardware at a loss and recouping revenue through exclusive games, subscriptions and accessories—an approach reportedly used by Nintendo for the Switch 2.

"When companies sell their hardware under cost for competitive advantage, or buy exclusive content for it, they’re doing that to build a more closed system," Valve said, arguing customers should be free to view its hardware as one option among many. The company’s defense of openness sits alongside criticism of its own platform practices.

steam machine, valve, subsidize, pricing, supply crisis, computing components, open systems, exclusive games, switch 2, closed system