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HoloDust said:

Not sure what Valve has been smoking, but just looked up on PCPartPicker - 5600X, 2x8GB DDR4, RX 9060XT and 512GB NVME is around $990-1000. And that is ~ 70% faster than GabeCube.

While I agree with the message, there are other things that add costs to the Steam Machine, like a custom motherboard, power supply and massive heatsink.

Also, I don't think Valve will get the same bulk discount as other AIBs because they won't be ordering as many parts oas others.

Jizz_Beard_thePirate said:

Steam Machine now faces discounted gaming PCs with faster GPUs

https://videocardz.com/newz/steam-machine-now-faces-discounted-gaming-pcs-with-faster-gpus

I really do not believe their excuse about "current market pricing" as a justification because of how slow the CPU and GPU is in this thing. Either they got fleeced from their supplier or they got greedy.

Valve Steam Machine ships with only one DDR5 RAM stick

https://videocardz.com/newz/valve-steam-machine-ships-with-only-one-ddr5-ram-stick

Valve is working with NVIDIA on SteamOS support

https://videocardz.com/newz/valve-is-working-with-nvidia-on-steamos-support

I think that Valve kind of cornered themselves this time around.

The CPU is fine, but they obviously had to go with an AMD GPU since Nvidia didn't pay attention to Linux until Valve released the Deck and SteamOS and team Green found itself at a disadvantage (much like they didn't care about console hardware until AMD used it to remain alive and mke a comeback, tho I'm not sure if Nvidia still cares enough about consoles to keep making custom chips for Nintendo given how little they care nowadays about gaming in general), tho it's not like Nvidia's low end options are that great either.

Still, I think development took so long that, by the end, the 7600M was severely underpowered for what they wanted to do, but they couldn't change it for something better because that would also bring changes to the power supply and the cooling... and the overall size of the device may have also played a role in the components they could pick to put inside.

In the end, tho, I think it's said in one of Linus videos that Valve's original target was around the $800 mark, and that was already way too much, at least imho.