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this post was submitted on 07 Jan 2024
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I highly doubt Valve makes a significant profit on Steam Decks, though. Their main win from selling them is that they keep people that have off-desktop gaming needs using their products/games. (Plus, I think Valve just likes advancing gaming even when it doesn't win them a profit)
Basically, it's not surprising these other hardware makers don't have any business model where they can sell a cheap handheld. It's probably smarter to go for the niche of enthusiasts that want something stronger than the Deck.
It's also because they want to advance gaming on Linux specifically.
When Windows 8 released, Microsoft was pushing their app store, ARM devices that could only access the Windows store, and Windows Phones. Valve became scared - Microsoft clearly wanted their future to be installing software through the Microsoft store.
They also added an "Xbox" app to windows - a clear indication that MS wanted to bring that business to PC, and have an unfair advantage by having their services pre-installed.
Gabe Newell has worked for Microsoft before and he knows just how ruthless and anti-competitive Microsoft can be. He knew that while Valve was 100% dependent on Windows, Valve was at risk.
So they brought out the Linux client and released Steam Machines, which as we all remember were a flop due to limited game compatibility and poor performance.
So Valve got to work on adapting WINE to create Proton, a Windows compatibility layer integrated into Steam. They put money into Linux development, then, when Proton was good enough, they released the Steam Deck.
Make no mistake, the Steam Deck is ultimately a part of Valve's overarching plan to reduce dependency on a hostile competitor that controls the entire platform that they operate on.
And I love them for it because I also want to reduce dependency on that company.
Agree on both points. It's nice to have options. I think the real fun will begin when Valve opens SteamOS up for other platforms, so it can be put on these higher-end handhelds, and even desktops.
SteamOS is already open source, and they’ve even offered to help other integrators put it on their handhelds
Isn't this true for most home consoles as well? Way I understand it Microsoft and Sony sell their consoles at near loss with the intention of making the money back on subscriptions and licensing