"Honestly, it's still getting worse" - Valve Steam Machine engineer says component prices are still rising, potentially paving the way for a price increase - Eurogamer.net

What the report says

Eurogamer reports that Valve is still facing worsening component costs for its recently shipped Steam Machine, raising the possibility that the device’s price could climb further. The outlet says Valve’s hardware team is seeing no clear relief from the wider memory supply crunch, with the Steam Machine already launching at a minimum price of £879, or $1,049 — higher than Valve had initially hoped.

The report cites comments Valve engineer Yazan Aldehayyat gave to Bloomberg, in which he said the situation is “still getting worse” and that retail prices may be several months behind what bulk buyers are currently seeing. Eurogamer notes that Aldehayyat did not explicitly announce a price rise, but says the remarks point to pressure on future pricing for Valve hardware.

Eurogamer places the comments in the context of broader electronics price increases affecting gaming hardware. It says RAM and storage costs are being strained by demand linked to AI data centres, and notes Microsoft’s earlier announcement that Xbox Series X/S prices would rise from 1 August. According to Eurogamer, Microsoft also warned that some component prices could double again by autumn 2027. The article adds that Sony has raised PS5 prices several times, while Nintendo announced a Switch 2 increase from 1 September.

The significance for consumers is that higher memory and storage costs could affect not only Steam Machine pricing, but potentially devices such as Steam Deck and major consoles. Eurogamer says Valve remains hopeful pricing will eventually stabilize, though prolonged shortages could make higher electronics prices more normal.