this post was submitted on 15 Nov 2025
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Can everyone please stop claiming and speculating that Valve's new hardware will be loss leaders? If you watch LTT and Gamers Nexus's first videos on the announcement, they actually spoke with Valve's engineers. And the Valve representatives already said that the new hardware WILL NOT BE LOSS LEADERS.

There isn't even evidence that the Steam Deck was a loss leader. All GabeN said was that the lowest cost launch model was priced "painfully", which doesn't necessarily mean it was sold at a loss, it could easily have been sold at a very tight margin.

And no, low margins does not meet the definition of a loss leader. A loss leader is a product sold below cost, in that every unit sold actually costs the seller money.

I get the desire to speculate on new hardware. It's fun and it helps pass the time until we hear more info from Valve. But there's limits to what is reasonable. Valve has already stated that the new hardware won't be loss leaders, so hoping and/or claiming they are isn't reasonable.

Sorry for the rant, but all of the comments that seem to have only skimmed headlines are quickly getting to me

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[–] squaresinger@lemmy.world 70 points 4 days ago (27 children)

It can't be a loss leader.

The steam machine is, hardware-wise, just a regular Mini-PC. Valve even lets you put whatever OS you want on there. So if this was a loss leader, that would mean that non-gamers and even small businesses would buy these, would install Windows on them and use them as office PCs, with Steam probably not even installed on the PC.

With the Steam Deck, the form factor made it impractical or at least really weird to use them as office PCs. The steam machine doesn't have that issue.

[–] entwine@programming.dev 10 points 3 days ago (1 children)

Lol this reminds me of that time the US Air Force built a giant compute cluster using PlayStation 3s. Idk if Sony sold those at a loss, but they certainly didn't see any game purchases coming from the US Department of Defense

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[–] Datz@szmer.info 8 points 3 days ago (2 children)

I was thinking that they might require a Steam account to order, the same way they stopped scalpers for Steam Deck, but there'd be ways around that.

It'd be hilarious if you needed something like "profile level 10" to order though.

[–] pory@lemmy.world 2 points 12 hours ago

This part's basically guaranteed, yeah. But there's a secondhand market and also surely some scalping companies saw the Deck launch and went yknow what? It doesn't cost us much in the long run to make a few hundred Steam accounts now and buy some $0.10 team fortress hat on them just in case Valve does the incredibly predictable thing of releasing more desirable hardware.

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[–] Joelk111@lemmy.world 5 points 3 days ago (1 children)

Exactly, but I don't see anything keeping them from selling the Frame at a loss or tight margin. What else are you going to use that with but Steam games?

Even the Steam Controller is useless without Steam Input, but I'd argue it won't necessarily sell more games. Maybe they could include it with the Steam Machine for "free" to bump the price of the machine up enough to not make sense for a company, but still sell it at a tight margin to sell more games.

[–] Don_alForno@feddit.org 7 points 3 days ago (2 children)

Why would they sell any hardware at a loss at all? Console manufacturers do it to lock people into their ecosystem and sell them games at a premium, Valve doesn't need that, people are already overwhelmingly favoring their store.

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[–] DarrinBrunner@lemmy.world 189 points 4 days ago (14 children)

We could, you know, just wait and see.

*ducks*

[–] ivanafterall@lemmy.world 40 points 4 days ago

WHY YOU LITTLE...

[–] NOT_RICK@lemmy.world 24 points 4 days ago (1 children)

But will the new valve hardware help fill the empty pit in my chest?

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[–] PumaStoleMyBluff@lemmy.world 20 points 4 days ago

If you don't have a rigid and openly hostile opinion within 3 seconds of a new product announcement, you are an anti-capitalist commie!!

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[–] missingno@fedia.io 54 points 4 days ago (6 children)

Console manufacturers sell at a loss because they need to sell the console first before they can sell anything else. They can expect to make that money back on software the user could not have bought without the console.

Valve doesn't need people to buy Steam Machines to get them to start using Steam. In fact, I suspect most units sold will be to users who are already invested in the ecosystem. Selling at a loss would just be a straight loss to them.

[–] pory@lemmy.world 1 points 12 hours ago

On the other hand, even if they don't "make back" the loss, you can look at it as: how much money is Valve willing to pay to become a "mainstream" living room console competitor? Lose a couple billion dollars on Machine, but get 400k "give valve money, probably" machines plugged into TVs. Sony and MS have other divisions and they AND Nintendo have shareholder responsibilities. Those conpanies cannot tank a single year of number go down. Valve can, and surely there's a price that Valve would be willing to play to be "the xbox".

[–] Cethin@lemmy.zip 9 points 4 days ago (2 children)

Console manufacturers haven't sold at a loss in a long time.

I agree, it won't be huge gains directly for them, but even moving people off of Windows benefits them by removing control a competitor (Microsoft) has. I somewhat agree that it won't be sold at (much of) a loss, but maybe at cost. I'm sure they expect manufacturing prices to go down over time, and engineering was a one-time investment, so sold just below cost doesn't seem unreasonable to me at launch, which then becomes at cost or above in the future.

This all depends on if their goals for it are short-term or long. Historically, they seem to target long-term. That's why I think it'll be as low as they can make it, which they also said they're doing by only having 8GB VRAM as cost savings. They want to drop the price as low as they can to compete. They won't compete at $1k. I doubt they'd compete at $600-700. I suspect they're targeting $400-500, which seems like a reasonable cost for the hardware too.

[–] sugar_in_your_tea@sh.itjust.works 6 points 3 days ago* (last edited 3 days ago)

Console manufacturers haven’t sold at a loss in a long time.

They tend to at first launch. This article says it took 6 months for the PS4 and a bit longer for the PS5 to stop selling at a loss. It's no longer the whole product lifecycle, but they are still sold at a loss at least at the start. I think that implies that hardware sales aren't a major profit center, so even if they are profitable, there's probably not a ton of margin.

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[–] The_Picard_Maneuver@piefed.world 57 points 4 days ago (6 children)

Since they've said it's basically an entry level gaming PC that will cost more than a console, I think the >700, <$1000 speculation is most likely.

[–] ampersandrew@lemmy.world 34 points 4 days ago (5 children)

that will cost more than a console

Is that part of the quote? Because I just saw "priced like an entry level PC, not like a console", which was more ambiguous than saying "priced like a console". One man's entry level PC is $300, and another's is $1000. I have a mini PC with the power of a PS4 Pro, which I'd easily consider entry level, and it cost me $530 about a year and a half ago.

[–] The_Picard_Maneuver@piefed.world 31 points 4 days ago (10 children)

It's possible I'm just interpreting the quote wrong. I figured they were making the distinction between "console" and "entry level PC" as a way to say "The price isn't set yet, but don't expect this to be $400-500"

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[–] chiliedogg@lemmy.world 40 points 4 days ago (4 children)

They can't sell them at a loss without a locked-down ecosystem. Sony learned that the hard way with the OtherOS support for the PS3 that lead to a ton of them being purchased to build cheap supercomputer ls and never spending a dime on games or software to cover the loss.

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[–] Acidbath@lemmy.world 4 points 3 days ago* (last edited 3 days ago)

>.> what have I done

[–] paraphrand@lemmy.world 29 points 4 days ago* (last edited 4 days ago) (3 children)

I’m aware of Valve being very generous with warranty/replacements of controller hardware for the Index. Even years after the warranty is up. But I think this is because of the major durability issues and known defects that the Index Controllers have.

In any case, Valve seemingly has lost money on a certain percentage of Valve Index kits/controller hardware. Based on how many people I know, including myself, who have gotten replacement hardware from Valve. Sometimes many times for recurring issues.

But I’m not aware of Valve doing the same for the Deck.

Edit: and you can tell they focused really hard on making the new controllers more durable:

  • No charging port to melt
  • durable sticks that won’t start drifting
  • No special finish on the controller that can be worn/scratched away
  • No internal battery to go bad
  • seemingly far fewer delicate parts

Funny point on the melting charging port. 2 years or so after the Index came out, SteamVR started warning using with a status dialog that told users to stop charging their controllers while they use them. They never accounted for long play sessions and people who would want to charge while playing.

USB-C has durability issues when used like that.

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[–] krooklochurm@lemmy.ca 16 points 4 days ago (7 children)

To be a loss leader doesn't the need to lead to something?

The only way it could make sense that they're selling these at a loss would be - oh yeah. They're coming straight for Nintendo / Sony / Microsoft now, huh?

The day I see a steam console in wal mart is a day I will be very happy.

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[–] LettyWhiterock@lemmy.world 12 points 4 days ago

To be fair, I don't watch either of those youtubers. So I had no knowledge of this.

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