Steam Machine pricing may still change to worse
Valve says the memory and storage supply crisis is continuing to deteriorate, with current retail prices failing to show the conditions hardware manufacturers are already facing.
Valve engineer Yazan Aldehayyat told Bloomberg that the situation is “still getting worse.” According to Valve’s observations, products and prices currently visible on retail shelves are between three and six months behind the bulk component market.
Retail prices may not reflect current supply costs
This delay means current DRAM and storage prices may be based on inventory purchased before the latest bulk supply changes. Higher costs paid by hardware manufacturers could take several months to affect finished PCs, memory kits, SSDs and other consumer products.
Honestly, it’s still getting worse. Just in case people are not aware. What people are seeing on retail shelves right now, from our observations, is lagging what we’re seeing from a bulk supply by at least three to six months.
— Yazan Aldehayyat, Valve
Valve experienced this problem while preparing the Steam Machine for production. The company originally intended to market the system as an entry-level PC, but rising memory and storage costs made the planned pricing difficult to maintain.
The Steam Machine eventually launched with the 512GB model priced at $1,049 and the 2TB version at $1,349. Valve said the cost of the individual components closely matches the retail price, while the company decided against subsidizing the hardware.
© Gamers Nexus Steam Machine production remains limited
Valve has sold every Steam Machine produced so far, according to Bloomberg, but the company has not disclosed shipment numbers. Production remains limited by the amount of memory Valve can obtain, with engineer Pierre-Loup Griffais saying the company is building as many units as available components allow.
Aldehayyat said the market may eventually correct through lower component prices. The alternative is that current higher pricing becomes normal if supply conditions do not improve. Valve says the shortages will not change its future hardware roadmap.
Source: Bloomberg
