About the Steam Machine
Quick Thoughts on Valve's New Toy
Valve revealed the Steam Machine (and friends). There have been rumors that Valve is taking the concept it developed for the Steam Deck and bringing it into the living room. Now those rumors have been confirmed as true. I’ve seen a lot of hot takes and technical deep dives, as well as some crazy calls that this will be the final nail in the coffin for Xbox. It’s time for me to give my overall thoughts on this new entry into the gaming living room market.
The Console
The Steam Machine is a hybrid PC and console—ironically, what Microsoft is rumored to be aiming for with the next Xbox. Valve had tried this before in the early to mid-2010s, but that was more of a rushed concept that involved licensing the system out rather than sitting down and making a first-party box. I also expect we could see more licensed Steam Machines from others in the near future. This time, Valve is not letting traditional consoles dictate what it does. The console itself is exciting, but the specs on paper bring the excitement down for some. Essentially, the system is a bit below the power of the base PS5 and the Xbox Series X. It’s more of a Series S killer if anything. I don’t think this is necessarily a bad thing if Valve gets serious about selling it to more everyday consumers. I feel like what regular consumers want from a video game console is clashing against the hardcore crowd that wants the console makers to keep going for power. Valve is releasing a capable box that gets the job done and isn’t looking to challenge the power game.
How Valve markets the system will be key. If they continue to go the Steam Deck route and focus just on a small, loyal customer base… I see this as another Steam Deck with low volume sales but a passionate fan base. If they decide to market this and put it in retail spaces like Walmart and Target, they could gain some traction. That said, the specs are fine for now, but in about two years' time, it’ll be easily surpassed by the PS6 and next Xbox. That could create problems that the Switch 2 is sure to face with AAA western third-party publishers as they look to make their games around those new consoles. Then again, with graphical fidelity hitting ceilings, they could potentially get away with it. Another worry is that games like Fortnite and Roblox won’t be here. Valve says they are working on it, but those games are too big to ignore if you’re hoping to reach younger gamers who love them.
As for price, I am surprisingly in the minority who think it will be about $400. I think many people are forgetting that they could subsidize this, unlike Asus, which has to sell its ROG Ally lineup at a profit. If this thing, which is slightly weaker than the PS5, sells at say $600 or more, that could be a problem. The other issue is the controller. I’m sure it'll feel fine in your hands, but many customers will see it and be turned off. Although it does make them different, I personally feel gaming controllers need a kick in the pants when it comes to innovation.
The Frame
I’ve been a fan of what VR and AR headsets can be for a long time. Unfortunately, the more computer-based aspect of the headset —spatial computing —isn’t doing so well. The Apple Vision Pro is too expensive, and it feels like Apple put it out more under pressure than with the careful planning that Steve Jobs would do for new product categories. The Galaxy XR is an interesting and much cheaper alternative, but I’m willing to bet not many are clamoring still for a $1800 headset. The problem with VR is that most people see it as a gaming option rather than a computing platform. This leaves Meta Quest, the most popular VR headset, but also one that isn’t evolving fast enough. Furthermore, I really hate the idea of giving Meta and Zuckerberg money so that I can have and try a VR headset. Well… here comes the Steam Frame.
It seems this is one part Quest alternative and one part VR local streamer, ala PlayStation Portal streaming. I am intrigued by this device, and it could become my first VR hardware. I can see myself using it natively and streaming from a potential purchase of a Steam device as well. That said, price will be a factor. The rumored $1000 price is not something I can do, and I really hope Valve believes in this product. I’m going to be pulling for this headset because, even though I have little to no experience in the market, I do want to see VR, AR, and XR devices do well over time. I hope that the Steam Frame is part of the solution.
The Ecosystem and Future of Gaming
No matter how things go for these new hardware units, it gives Valve a leg up on Microsoft in what I've been telling people will be the future of video games. No more focus on hard stop generations and closed off boxes, but instead a new world of ecosystems, and letting players pick how and where they want to play. Valve has the benefit of good PR and image, while Microsoft is screwing up the Xbox brand's image. That said, I strongly disagree with those claiming this is the end of the Xbox. We still need to see exactly what the next Xbox looks like, and Steam is a new brand for non-PC master race gamers. If anything, this is a preview of the things to come from Xbox.
Valve’s lineup includes several devices you can pick from and play from their SteamOS and storefront. This could just be where gaming is heading. Think of how motion pictures gave way to television shows, and then to miniseries. Gaming could be branching out, and the days of these consoles getting final say on what enters the gaming lexicon are ending. The Switch’s success is the fact that it wasn’t just another box. Kids are growing up wanting fancier new phones while playing Fortnite. The future of gaming, if AAA gaming wants to survive, could be these multiple devices aimed at different types of consumers, and a shift away from the obsession with ultra-realistic graphics. There’s a strong possibility that, as NES established modern console gaming, Valve’s new Steam hardware ecosystem and the Xbox ecosystem could be the next model for developers and customers. PlayStation is rumored to be looking at a handheld and Series S-style box, and I’m willing to bet a PlayStation PC storefront is under development. The rest of this decade is going to be very interesting to watch.
I’m all in for this. A dedicated living room Steam box has been a dream of mine for years, and this time the hardware and ecosystem finally feel ready. Even if it’s “only” Series S tier, that’s still more than enough for most of the games I would want to play.