Valve admits Steam Machine price is “significantly more” than planned as launch stock remains tight

Valve has confirmed that the Steam Machine will launch at a price “significantly more” than originally envisioned, starting at £879 and rising to £1,149, with initial supply quantities lower than intended due to severe global component shortages.

The Steam Machine, Valve’s new cube-shaped, console-like gaming PC, will be released with a baseline storage configuration priced over $1,000 (equivalent to £879 in the UK) and £938 when bundled with a Steam Controller, according to direct statements from Valve provided to Eurogamer ahead of the price reveal on 22 June 2026. The Steam Machine’s entry-level price far exceeds both industry expectations and the cost of rival hardware: Sony’s PlayStation 5 Pro, which is more powerful, is priced at £790.

Steam Machine pricing and configurations

• 512GB Steam Machine: £879
• 512GB Steam Machine + Controller: £938
• 2TB Steam Machine: £1,149
• 512GB OLED Steam Deck: £649 (for comparison)
• 1TB OLED Steam Deck: £779 (for comparison)
• PlayStation 5 Pro: £790 (reference)

Valve would not disclose its original anticipated launch price for the Steam Machine, but acknowledged it had once aimed far lower. “Our original goal for the price of Steam Machine is no longer viable, so we’ve updated our pricing strategy,” Valve stated in its June 2026 blog post, directly linking ongoing cost increases to a “component shortage crisis caused by AI datacentre component demand.”

Valve engineer Yazan Aldehayyat told Eurogamer, “The price is now ‘significantly more.’ It’s hard because I don’t think we ever really had an official price or anything like that. But it’s really difficult to quantify it.” He added, “We were aware of the market trends of pricing going up, but I don’t think anybody really expected or predicted the extent to which they were going up and [are] still going up.”

Global shortages hit pricing and production

Valve began sourcing components for the Steam Machine in 2023, expecting prices to decrease, a “misunderstanding born from the many years of data we all have about the evolution of PC hardware prices,” according to its official blog. Instead, the company found itself blindsided as prices for essential silicon and storage continued to rise during the global supply crisis, creating a knock-on effect on both cost and available units at launch.

User interface designer Lawrence Yang explained, “It’s less than we wanted to be able to make, and it’s a combination of both the price of components and what would make sense, but also availability of components. Some things are just not available or have a ridiculously large lead time.”

When asked specifically which components are affected, Aldehayyat specified, “Those things, in case you’re wondering, are RAM and storage.” He emphasized the strain, stating, “Our sourcing team is working night and day to get as many parts as possible. I think they’re doing a great job, and we’re continually improving supply – there’s a lot of improvements on that front – so we’re doing our best to get as many units in people’s hands who want them as possible.”

The Steam Machine will begin dispatching orders from 29 June 2026. Valve declined to reveal exact launch quantities, but confirmed that numbers are “less than we wanted,” with supply to be replenished as the year continues.

• Steam Machine launch dispatch date: 29 June 2026
• Launch quantities: Not disclosed; confirmed to be below internal targets
• Key components in shortage: RAM and storage

On the subject of price competitiveness, Aldehayyat said, “Even at the price, it’s still competitive with similarly specced machines, especially pre-built machines. But obviously we always want our hardware devices to be as affordable as possible, because we really want to bring in as many people as possible into the gaming ecosystem, especially people who are very price sensitive. We were definitely hoping to make it more affordable for more people, but even at this price-point, we still think it’s a good value, still commensurate with other similar devices.”

Market reaction and consumer value

Valve is aware that sticker shock may affect demand. “I’m very curious to see how people react to the price,” Yang admitted. He added, “We’re in a different time now than we were a few months ago. I feel like [awareness of the component shortage] has seeped into the general consciousness, at least of people who are following hardware. All the prices are going up, things are going out of stock, something’s happening to the point where everyone is impacted by it. So I’m guessing that people – or hoping that people – will understand.”

Yang continued, “And then for some people, the price proposition might not be right for them, and that’s totally fine. It is more expensive than we wanted it to be, for sure. But we think that compared to what you could build with the same price, it is kind of commensurate, and we think that we’re bringing something extra with the small form factor and all of the other stuff that we built into it.”

The Steam Machine measures roughly the dimensions of a squared PC fan, providing a small form factor engineered for quiet operation and simplicity. Its performance is comparable to the PlayStation 5, but the cost structure and market approach are distinct. While Valve’s hardware offers users plug-and-play access to the massive Steam catalogue in their living room, the company’s leadership recognises that current market forces have driven both price and launch numbers well above and below what they intended, respectively.

• Form factor: Small, cube-shaped, PC fan-sized
• Target use: Console-like, plug-and-play PC gaming device with Steam library access
• Performance: Broadly equivalent to PlayStation 5

Valve has pledged to ramp up production as component availability improves through 2026. There is hope within the company that, despite higher-than-expected prices and limited first-wave stock, the unique features and value proposition will justify the investment for PC gaming enthusiasts and console converts alike.