Steam Machine could cost around $700, build analysis estimates

Valve’s Steam Machine could cost around $700, according to an analysis of its likely manufacturing cost.

Steam Machine was announced earlier this month with a 2026 launch window and no official pricing details. However, Valve has said that, “if you build a PC from parts and get to basically the same level of performance, that’s the general price window that we aim to be at.”

In a new video, Linus Tech Tips has taken on that challenge, building a PC with component specs similar to Valve’s device and using it to estimate how much the Steam Machine could retail for when it releases next year.

The channel estimates that, if it were to build Steam Machine with the lowest historical prices, it could cost Valve around $602 to manufacture the device. However, in today’s market, with inflated component prices, it could cost as much as $910 at retail pricing, or $813 with lesser brands used.

Taking into account retailer profit margins, which Valve would not have to consider with its direct-to-consumer model, and the fact that it would be able to source some components cheaper, like power supplies, motherboards, and cases, Linus estimates that the Steam Machine will retail for around $700.

“I think it means $699 USD, if there are no changes in the market,” Linus said. “it’s probably above Valve’s cost today and there will be some opportunity for them to improve their margins over the several years lifespan of the device, as their initial investment gets paid off, and hopefully, RAM and SSD pricing returns to some form or normality.”

He added: “The Steam Machine presents a compelling deal at that price, without completely undercutting the market.”

Valve says it will reveal Steam Deck pricing ahead of its release next year. According to Ampere Analysis, much of the device’s success will depend on its price point.

“Ampere expects the new version of the Steam Machine to see success akin to the Steam Deck selling in the low millions over a few years,” said Ampere’s Katie Holt. “It will appeal to both established Steam gamers wanting an alternative access point to the platform perhaps through gaming on the TV and also to those consumers on the fence about spending a lot on a gaming PC.

“Among these consumers, uptake will be heavily dependent on pricing. The specification of the Steam Machine is relatively low-powered compared to high-end gaming PCs, so ideally it should be priced in-line with these expectations. “