Can everyone please stop claiming and speculating that Valve’s new hardware will be loss leaders? If you watch LTT and Gamers Nexus’s first videos on the announcement, they actually spoke with Valve’s engineers. And the Valve representatives already said that the new hardware WILL NOT BE LOSS LEADERS.

There isn’t even evidence that the Steam Deck was a loss leader. All GabeN said was that the lowest cost launch model was priced “painfully”, which doesn’t necessarily mean it was sold at a loss, it could easily have been sold at a very tight margin.

And no, low margins does not meet the definition of a loss leader. A loss leader is a product sold below cost, in that every unit sold actually costs the seller money.

I get the desire to speculate on new hardware. It’s fun and it helps pass the time until we hear more info from Valve. But there’s limits to what is reasonable. Valve has already stated that the new hardware won’t be loss leaders, so hoping and/or claiming they are isn’t reasonable.

Sorry for the rant, but all of the comments that seem to have only skimmed headlines are quickly getting to me

  • warmaster@lemmy.world
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    20 hours ago

    Cost aside. If they don’t price it competitively between the Xbox and the PS5, the Steam Machine will be DOA.

    The Deck is a perfect example of what they should try to replicate. If they don’t do that, it will flop.

    • RicoBerto@piefed.blahaj.zone
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      20 hours ago

      It’s a small computer, it isnt going after the Xbox or PS5 customers. It’s going for the people who want a computer in their living room.

      • Arcane2077@sh.itjust.works
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        19 hours ago

        This comment is so silly and yet I keep seeing it everywhere. What do you think the Xbox and Playstations are? What is it that xbox and playstation customers are looking for that this small computer isn’t?

        • Caveman@lemmy.world
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          3 hours ago

          I know my case is specific but having a Jellyfin running on a Steam computer looks to me as good case for having a computer in the living room. Adding a TV applications to Steam such as Netflix is also a case. Then there are people who have their workstation close to the TV so they can use it instead of their laptop and just switch displays with one of these HDMI branching dongles.

        • deranger@sh.itjust.works
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          19 hours ago

          What do you think the Xbox and Playstations are?

          Consoles.

          What is it that xbox and playstation customers are looking for that this small computer isn’t?

          I have a hard time even figuring out what you’re trying to ask here.

          • Arcane2077@sh.itjust.works
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            11 hours ago

            Consoles.

            Consoles are just small computers lol

            I have a hard time even figuring out what you’re trying to ask here.

            Don’t know what else to tell you. Person I replied to said console customers aren’t interested in consoles. That’s silly

            • deranger@sh.itjust.works
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              19 hours ago

              No, it isn’t, in practice. Xbox and PS5 have more in common with my iPhone than my desktop PC or NAS when it comes to being able to do what I want with it.

              It will be interesting to see how proprietary the Steam machine is. That’s how I’d end up classifying it as console or miniPC.

              • Arcane2077@sh.itjust.works
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                11 hours ago

                Having more features and flexibility than other consoles doesn’t take away its main function and selling point.

              • ag10n@lemmy.world
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                19 hours ago

                The steam deck is also a small PC, just like the consoles and was priced perfectly for success

                • deliriousdreams@fedia.io
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                  18 hours ago

                  I don’t use my PS5 to surf the web. I know you can use it to watch movies and stuff, but I don’t use it for that either.

                  At best, it depends on what kind of user most of the console owners are.

                  • Arcane2077@sh.itjust.works
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                    11 hours ago

                    It’s odd that the PS4 has a web browser, and that the PS5 has mouse and keyboard support, but neither has both

        • RicoBerto@piefed.blahaj.zone
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          15 hours ago

          You are correct in that all technically fit the definition of computers. However consumers don’t care about technical definitions or think rationally about purchases. They don’t all do a rational analysis of the products on the market that would accomplish their goals and spend accordingly. They walk into GameStop and buy one of the boxes that makes call of duty show up on their living room tv. Just like the Deck fits the definition of a handheld computer with a built in screen and controllers for playing games but isn’t stealing any customers from the switch.

          Deck isn’t selling millions and it’s doing just fine. The Steam Machine will be a small computer box priced as such and there won’t be a single person that decides to buy it over a ps5, and that’s fine. Valve doesn’t have to compete with consoles cause they don’t make consoles.

          Valve themselves have said that the Machine will not be priced like a console but like an entry level PC whatever that means. The only people that will notice this to buy it are people who already know what a PC is.

        • ElectricWaterfall@lemmy.zip
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          17 hours ago

          I think the difference is that the Xbox and PlayStation are locked down to their respective ecosystems with monthly subscription and only one online store. Microsoft and Sony have almost guaranteed return based on that alone. If valve prices this as a loss leader what’s to stop a large corporation to buy 20k steam machines and use them as computers instead of consoles. Then valve is just eating that cost with no return on the other side.

          • ag10n@lemmy.world
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            17 hours ago

            The Ukraine military has been using steam decks on the front line Do you really think it’s affected their bottom line?

      • Ulrich@feddit.org
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        16 hours ago

        Hard disagree. I think that’s exactly who they’re going after. That’s why they added all the console features like CEC, wake on BT, background updates, and a controller-first interface.

        I think that’s pretty clearly who they’ve been targeting for >10 years with SteamOS.

    • JoshuaFalken@lemmy.world
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      19 hours ago

      I’m not sure cost can be set aside from a price discussion when they’ve explicitly stated it won’t be a Costco rotisserie chicken.

      With the number of consoles sold this generation, I’m not sure where the limit is for what people will spend to play the games they want. With console pricing has trailing budget gaming PC’s, I could see a number of people getting a Steam Machine in lieu of the next Playstation or Xbox.

      What would be interesting to see in the future is the split between units sold to lifelong console players making a change, and pre existing Steam users with stuffed libraries buying one for the couch. If the latter make up the majority of sales, but they priced it like a chicken, that’ll be a problem pretty quick.

      Hopefully it shakes out well and indie game developers reap some well deserved rewards.

    • pilferjinx@piefed.social
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      20 hours ago

      Is the machine competing with consoles? I thought it was just packaging an adorable sized pre built PC.

      • ag10n@lemmy.world
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        16 hours ago

        I think this is the goal that it would be priced competitively with the Pro or higher end consoles

        They’ve built an ecosystem that gives you that console experience and if you really want to use it as a PC then you can.

        The whole thing screams high quality experience for those that want it to just work or those that want to tinker

        They really know their audience