Valve has admitted that the Steam Machine, which launched at £879 in the UK without a controller, is more expensive than the company had hoped. Speaking to Linus Tech Tips, Valve disclosed that the original price target can be inferred from the recent price increases of the Steam Deck, which rose by roughly 36% due to the ongoing 'RAM-pocalypse.'
Original Price Estimate
Applying a 36% discount to the Steam Machine's current UK pricing suggests Valve intended to sell the 512GB model for around £563, and the 2TB version for about £735. Including a controller, the bundles would have been approximately £600 and £773 respectively. Valve declined to give an exact figure but indicated that the Steam Deck's price hike reflects the same market pressures.
Why the Price Is High
The price increase is attributed to a surge in demand for RAM from AI data centres, which has driven up component costs globally. Valve delayed the Steam Machine from early 2026 in hopes of waiting out the crisis, but ultimately had to ship the product. According to the company, the 'RAM-pocalypse' shows no signs of abating, with Nintendo also planning price increases later in 2026. New manufacturing pipelines are expected to alleviate costs, but not until late 2027 or early 2028 at the earliest.
Will Prices Drop?
Valve has not indicated any planned price reductions for the Steam Machine. Even if production costs fall, consumer prices may remain high if demand stays strong. Gamers can register to pre-order the console on Valve's website, with reservations opening on June 25. The current £879 price tag is expected to hold for the foreseeable future.
