“Honestly, it’s still getting worse” – Valve Steam Machine engineer says component prices are still rising, potentially paving the way for a price increase
A Valve engineer has warned that component prices remain on an upward trajectory even after the company's Steam Machine console launched at a higher-than-intended price, raising the prospect of further increases across gaming hardware. Speaking to Bloomberg, Yazan Aldehayyat said the ongoing memory and storage crisis, driven largely by AI datacentre demand, is continuing to worsen and that retail prices currently lag bulk supply costs by three to six months, meaning further rises are likely already in the pipeline.
The Steam Machine launched at a minimum of £879 ($1,049), a figure Valve had previously admitted was above its original target. The issue is not isolated to Valve: Microsoft has raised prices across its Xbox Series X/S range from 1st August and expects component costs to double again by autumn 2027, while Sony has repeatedly increased PS5 prices and Nintendo has announced a Switch 2 price rise from 1st September. Aldehayyat expressed hope that pricing would eventually stabilise, but acknowledged that current costs may simply become the new normal for consumer electronics.
- Valve says component prices are still rising, not stabilising.
- Steam Machine already launched at £879, above Valve's target.
- Xbox, PS5 and Switch 2 have all faced recent price hikes too.