this post was submitted on 15 Nov 2025
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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

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[–] DarrinBrunner@lemmy.world 186 points 1 day ago (8 children)

We could, you know, just wait and see.

*ducks*

[–] echodot@feddit.uk 5 points 1 day ago (2 children)

I would be happy to wait and see but idiots online keep trying to insist it'll be $2,000 even though the hardware isn't close to worth that much. Some of these people are big influencers and really should know better.

[–] ClassifiedPancake@discuss.tchncs.de 2 points 1 day ago* (last edited 23 hours ago) (3 children)

So what exactly does that change? Valve already decided the price and that is what you will have to pay. Who cares what anyone ever predicted?

[–] tburkhol@lemmy.world 4 points 1 day ago

I want it to be a successful product, that I can buy, and will be supported for a useful number of years. $800-1200 feels OK for that. $2000 feels like Apple Vision territory.

Jesus, man: haven't you ever been excited about a thing before it's on shelves? Speculated about a sports game before it's over? Talking about your anticipation is part of the fun.

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[–] ivanafterall@lemmy.world 39 points 1 day ago

WHY YOU LITTLE...

[–] NOT_RICK@lemmy.world 23 points 1 day ago (1 children)

But will the new valve hardware help fill the empty pit in my chest?

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[–] PumaStoleMyBluff@lemmy.world 19 points 1 day ago

If you don't have a rigid and openly hostile opinion within 3 seconds of a new product announcement, you are an anti-capitalist commie!!

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[–] missingno@fedia.io 51 points 1 day ago (4 children)

Console manufacturers sell at a loss because they need to sell the console first before they can sell anything else. They can expect to make that money back on software the user could not have bought without the console.

Valve doesn't need people to buy Steam Machines to get them to start using Steam. In fact, I suspect most units sold will be to users who are already invested in the ecosystem. Selling at a loss would just be a straight loss to them.

[–] Cethin@lemmy.zip 8 points 1 day ago (2 children)

Console manufacturers haven't sold at a loss in a long time.

I agree, it won't be huge gains directly for them, but even moving people off of Windows benefits them by removing control a competitor (Microsoft) has. I somewhat agree that it won't be sold at (much of) a loss, but maybe at cost. I'm sure they expect manufacturing prices to go down over time, and engineering was a one-time investment, so sold just below cost doesn't seem unreasonable to me at launch, which then becomes at cost or above in the future.

This all depends on if their goals for it are short-term or long. Historically, they seem to target long-term. That's why I think it'll be as low as they can make it, which they also said they're doing by only having 8GB VRAM as cost savings. They want to drop the price as low as they can to compete. They won't compete at $1k. I doubt they'd compete at $600-700. I suspect they're targeting $400-500, which seems like a reasonable cost for the hardware too.

[–] crmsnbleyd@sopuli.xyz 1 points 22 hours ago

Does Nintendo not sell at a loss?

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[–] jj4211@lemmy.world 9 points 1 day ago (1 children)

Probably true, but there is a chance they might convert some console gamers...

But not enough to bet on it with a loss leader probably.

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[–] The_Picard_Maneuver@piefed.world 56 points 1 day ago (3 children)

Since they've said it's basically an entry level gaming PC that will cost more than a console, I think the >700, <$1000 speculation is most likely.

[–] echodot@feddit.uk 5 points 1 day ago (3 children)

Personally I don't think I would say that most people would consider a $1,000 PC to be entry level. To me entry level means something that a kid could save up their pocket money for in a reasonable amount of time maybe with a paper route to supplement. I'd say entry level ends at about $700 just to throw a number out there. For $1,000 you could get a PS5 and a PSVR2

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[–] ampersandrew@lemmy.world 31 points 1 day ago (5 children)

that will cost more than a console

Is that part of the quote? Because I just saw "priced like an entry level PC, not like a console", which was more ambiguous than saying "priced like a console". One man's entry level PC is $300, and another's is $1000. I have a mini PC with the power of a PS4 Pro, which I'd easily consider entry level, and it cost me $530 about a year and a half ago.

[–] The_Picard_Maneuver@piefed.world 29 points 1 day ago (10 children)

It's possible I'm just interpreting the quote wrong. I figured they were making the distinction between "console" and "entry level PC" as a way to say "The price isn't set yet, but don't expect this to be $400-500"

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[–] LettyWhiterock@lemmy.world 12 points 1 day ago

To be fair, I don't watch either of those youtubers. So I had no knowledge of this.

[–] chiliedogg@lemmy.world 38 points 1 day ago (4 children)

They can't sell them at a loss without a locked-down ecosystem. Sony learned that the hard way with the OtherOS support for the PS3 that lead to a ton of them being purchased to build cheap supercomputer ls and never spending a dime on games or software to cover the loss.

[–] Cethin@lemmy.zip 4 points 1 day ago

IIRC, the Deck, at launch, had a limit per Steam account, and it had certain requirements. There's no reason they couldn't do something like that here. Sure, it makes it harder to convert console players if they do the same technique, but it could be restricted sales based on something.

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[–] paraphrand@lemmy.world 26 points 1 day ago* (last edited 1 day ago) (1 children)

I’m aware of Valve being very generous with warranty/replacements of controller hardware for the Index. Even years after the warranty is up. But I think this is because of the major durability issues and known defects that the Index Controllers have.

In any case, Valve seemingly has lost money on a certain percentage of Valve Index kits/controller hardware. Based on how many people I know, including myself, who have gotten replacement hardware from Valve. Sometimes many times for recurring issues.

But I’m not aware of Valve doing the same for the Deck.

Edit: and you can tell they focused really hard on making the new controllers more durable:

  • No charging port to melt
  • durable sticks that won’t start drifting
  • No special finish on the controller that can be worn/scratched away
  • No internal battery to go bad
  • seemingly far fewer delicate parts

Funny point on the melting charging port. 2 years or so after the Index came out, SteamVR started warning using with a status dialog that told users to stop charging their controllers while they use them. They never accounted for long play sessions and people who would want to charge while playing.

USB-C has durability issues when used like that.

[–] owsei@programming.dev 8 points 1 day ago (1 children)

Doesn't the new controller have internal batteries?

[–] pycorax@sh.itjust.works 6 points 1 day ago (1 children)

I think they're referring to the Steam Frame controllers, not the Steam Controller.

[–] echodot@feddit.uk 5 points 1 day ago* (last edited 1 day ago)

The steam frame controllers use AA batteries, the steam controller has a lithium ion internal battery.

Also it does have a USB port but the primary charging method is via the pogo pins. But obviously you might want to recharge from a wall outlet so they also include a USB port. But that's obviously going to get used far less often than it would otherwise.

[–] krooklochurm@lemmy.ca 15 points 1 day ago (4 children)

To be a loss leader doesn't the need to lead to something?

The only way it could make sense that they're selling these at a loss would be - oh yeah. They're coming straight for Nintendo / Sony / Microsoft now, huh?

The day I see a steam console in wal mart is a day I will be very happy.

[–] RightHandOfIkaros@lemmy.world 11 points 1 day ago (3 children)

For Valve it would ideally lead to a new Steam account being created. Which would make sense if someone got one as a gift or something, naturally they would set up a Steam Account if they didnt already have one.

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[–] MonkderVierte@lemmy.zip 1 points 1 day ago (3 children)

...the fuck is a "loss leader"?

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