It's certainly not an existential threat to Playstation, but Xbox certainly has weakened itself enough that yes, this could be another nail in the coffin, given that their plan was to retreat into the Windows ecosystem.
The low specs aren't a problem if it's cheap enough, but for every dollar this goes above the retail price of a PS5 will seriously hurt its mass appeal.
The problem for Valve is that they can't really sell this thing at a console-like discount, because it's a general purpose computer. If this thing is way cheaper than a regular computer of the same spec, corporations will just buy up Steam Machines by the palette load and use them as office machines or whatever (just like what happened to Sony when they allowed the PS3 to boot into Linux and they had to release an emergency update that disabled the linux functionality even though it was an advertised feature).
I really hope this will be successful, but it'll likely be successful in a specific niche. The nice thing though about this niche is that they don't have to hit anywhere near the same sales numbers as a console to be a success because the R&D costs are lower, and games didn't have to be specifically tailor made for it.
E.g. the PS Vita sold more units than the SteamDeck, but the Vita was an unmitigated failure for Sony because unlike the SteamDeck, the Vita needed games to be specifically made for it, whereas the SteamDeck benefits from the entire PC ecosystem so doesn't need the same level of adoption to be a (limited) success.
> If this thing is way cheaper than a regular computer of the same spec, corporations will just buy up Steam Machines by the palette load and use them as office machines or whatever
Sure, but corporations don't want/need the same spec. They don't need the GPU, they don't need the fancy controller. If you just want a cheap PC that'll run a browser and Office, you can get them for under $200. If you want a Beelink with CPU/RAM/SSD similar to the Steam Machine, that's $350, and it includes a Windows license. Steam machine has an estimated BOM of $425, so even $500 will be a subsidized price after overhead. As long as Valve prices well above $250 it'll be safe from this concern, since corporations will likely want to add a Windows license to the cost.
> It's certainly not an existential threat to Playstation
To add to this, PlayStation is almost entirely sustained by exclusives at this point, and it's starting to backfire (more and more players are just waiting for the PC release, and the wait is killing some of marketing/hype that a game would have had, e.g., FF16 likely would have done a lot better if it released for PC at the same time rather than starting with PS exclusivity, and I suspect Death stranding 2 will be the same
> If this thing is way cheaper than a regular computer of the same spec, corporations will just buy up Steam Machines by the palette load and use them as office machines or whatever
On one hand, this would be a problem.
On the other hand, if the Steam Machine doesn't support windows, businesses fleeing from MS Windows en masse because the Steam Machine is cheap would be a VERY interesting turn of events, and I'd be VERY curious to see how it all unfolds.
Sorry if I was unclear, but what I was saying was that this would be unsustainable because the only way it'd be possible is if Valve was subsidizing each unit in hopes of recouping their losses on Steam game sales.
If that happened, Valve would get bankrupted by companies buying up subsidized Steam Machines with no intention of playing games on them.
Yes that's what I understood. But it'd still be insteresting.
Amazon was once a bookstore. There's nothing stopping Steam from adapting to a "Steam Business Machines" / "Steam OS Business Edition" once it has a foothold in the business market. After all, the store already distributes software, they're just not as popular as games. So if this scenario were to happen, and Microsoft failed to react, I'm sure Steam would adapt very quickly to take advantage of it rather than sit and wait for the bankruptcy.
The low specs aren't a problem if it's cheap enough, but for every dollar this goes above the retail price of a PS5 will seriously hurt its mass appeal.
The problem for Valve is that they can't really sell this thing at a console-like discount, because it's a general purpose computer. If this thing is way cheaper than a regular computer of the same spec, corporations will just buy up Steam Machines by the palette load and use them as office machines or whatever (just like what happened to Sony when they allowed the PS3 to boot into Linux and they had to release an emergency update that disabled the linux functionality even though it was an advertised feature).
I really hope this will be successful, but it'll likely be successful in a specific niche. The nice thing though about this niche is that they don't have to hit anywhere near the same sales numbers as a console to be a success because the R&D costs are lower, and games didn't have to be specifically tailor made for it.
E.g. the PS Vita sold more units than the SteamDeck, but the Vita was an unmitigated failure for Sony because unlike the SteamDeck, the Vita needed games to be specifically made for it, whereas the SteamDeck benefits from the entire PC ecosystem so doesn't need the same level of adoption to be a (limited) success.