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submitted 4 weeks ago* (last edited 4 weeks ago) by mnemonicmonkeys@sh.itjust.works to c/games@lemmy.world

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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[-] DarrinBrunner@lemmy.world 15 points 4 weeks ago

We could, you know, just wait and see.

*ducks*

[-] NOT_RICK@lemmy.world 5 points 4 weeks ago

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

[-] ivanafterall@lemmy.world 4 points 4 weeks ago

WHY YOU LITTLE...

[-] PumaStoleMyBluff@lemmy.world 4 points 4 weeks 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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[-] paraphrand@lemmy.world 4 points 4 weeks ago* (last edited 4 weeks ago)

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.

[-] owsei@programming.dev 2 points 4 weeks ago

Doesn't the new controller have internal batteries?

[-] pycorax@sh.itjust.works 3 points 4 weeks ago

I think they're referring to the Steam Frame controllers, not the Steam Controller.

[-] chiliedogg@lemmy.world 3 points 4 weeks ago

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.

[-] jj4211@lemmy.world 3 points 4 weeks ago

I think that was overstated. Sure there were some "fun" projects for fun or publicity.

However supercomputer clusters require higher performance interconnect than PS3 could do. At that time it would have been DDR infiniband (about 20 Gbps) or 10 g myrinet.

Sure gigabit was prevalent, but generally at places that would also have little tolerance for something as "weird" as the cell processor.

OtherOS was squashed out of fear of the larger jailbreak surface.

[-] Cethin@lemmy.zip 1 points 4 weeks ago

IIRC, the Deck, at launch, had a limit per Steam account, and it had certain requirements. There's no reason they couldn't do something like that here. Sure, it makes it harder to convert console players if they do the same technique, but it could be restricted sales based on something.

[-] missingno@fedia.io 3 points 4 weeks ago

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.

[-] jj4211@lemmy.world 2 points 4 weeks ago

Probably true, but there is a chance they might convert some console gamers...

But not enough to bet on it with a loss leader probably.

[-] turdcollector69@lemmy.world 1 points 4 weeks ago

They may be trying to muscle in on traditional console territory.

Steam has a well tenured reputation for having inexpensive games. They may be leveraging this to appeal to the console players turned off by the all recent price hikes.

I suspect the gabecube may be close to if not, at cost. I don't think it'll be at a loss.

Gabe has previously claimed that they developed the index because they didn't want VR to die and even gave grants the game developers who made VR titles.

So it's established that Steam is big enough and secure enough to risk cultivating new or disrupting old markets.

Operationally steam has low overhead and insane profit margin. Unless they fuck up the steam store they're guaranteed massive profit.

If the new hardware flops and they lose a bit of money; Gabe just buys one less yacht and steam ticks on as normal.

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[-] The_Picard_Maneuver@piefed.world 3 points 4 weeks ago

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 4 points 4 weeks ago

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.

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[-] echodot@feddit.uk 1 points 4 weeks ago

Personally I don't think I would say that most people would consider a $1,000 PC to be entry level. To me entry level means something that a kid could save up their pocket money for in a reasonable amount of time maybe with a paper route to supplement. I'd say entry level ends at about $700 just to throw a number out there. For $1,000 you could get a PS5 and a PSVR2

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[-] rafoix@lemmy.zip 2 points 4 weeks ago

I wonder if GPU/motherboard manufacturers are not leaving money on the table by not selling an all-in-one gaming motherboard like the one in the Steam Machine.

Built-in GPU and VRAM with the CPU, RAM and cooling optional.

[-] 4am@lemmy.zip 1 points 4 weeks ago

Why would anyone who’s in the market for a by-itself motherboard ever want something you can get as a modular piece as a built-in to another expensive piece?

Besides, if you want everything soldered on you can just buy a laptop motherboard.

Or a Mac

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[-] LettyWhiterock@lemmy.world 2 points 4 weeks ago

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

[-] IndustryStandard@lemmy.world 2 points 4 weeks ago
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[-] FreeBooteR69@lemmy.ca 1 points 4 weeks ago

Yeah they said they are pricing the Steam Machine at PC market prices, but they do having to contend with reality. There are consoles on the market that are more powerful at a lower price point, it will dampen their sales for sure. I mean most pcgamers probably have more powerful hardware already, what is the incentive? Sure small form factor, but is it worth a premium price to the average pcgamer? Console peasants will turn their noses up at it, so who are they marketing to?

I can see the Steam Frames selling better due to it being a fully untethered VRPC headset that can play more than just VR games. Not to mention you can stream from a more powerful PC to the frames making the battery last much longer and better gfx fidelity.

The Steam Controller has to contend with a flooded market of users used to using one type of controller, so a little bit of an uphill battle there too.

[-] xxd@discuss.tchncs.de 1 points 4 weeks ago

I mean most pcgamers probably have more powerful hardware already

According to Valve, it should outperform or match 70% of current PCs owned by gamers. So while not crazy powerful, it might be an affordable (hopefully) upgrade for some more low spec gamers.

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this post was submitted on 15 Nov 2025
25 points (96.3% liked)

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