They wanted it cheaper, but no way: Steam Machine price reflects "the state of the global manufacturing sector," says Valve

The price of our hardware directly depends on the cost of these components. When we started purchasing them for the Steam Machine in 2023, we thought we had a good understanding of how these costs might change over time. We relied on years of data on computer hardware price dynamics – primarily, the fact that it usually gets cheaper as new technologies emerge. However, over the last year (or so), the situation has changed dramatically, especially regarding RAM and storage components. There were many reasons for this, each affecting hardware worldwide. As a result, the initially planned price for the Steam Machine ceased to be realistic. So the prices announced today reflect the state of the global manufacturing sector, or more precisely, the cost of the components we purchased over the last six months.