Steam Machine Could Change PC Gaming Forever

Valve’s growing influence shapes a shifting landscape where traditional platforms struggle to maintain control over modern gaming expectations.

Hardware by Katmin on Jan 01, 2026

For a long time, people have joked that a certain famous person in gaming is slowly becoming a real-life wizard. He is said to have become a modern-day Gandalf after spending years traveling through the rugged landscapes common to fantasy epics.

Some claim this explains why he no longer concerns himself with trivial matters, such as telling anyone when a certain long-awaited sequel is coming out. Once someone becomes "time itself," the concept of time no longer applies.

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One of his most powerful abilities is often joked about as the "Steam Sale incantation," cast during the holiday season, when he promptly exterminates all our money. Each rare sighting of him—usually once or twice a decade—features the iconic white shirt and giant beard. It feels almost intentional.

AI, Windows, and the Linux Shift

We often ask ourselves whether the tech bubble is starting to pop, especially given how corporations push AI. Companies say there is a huge demand for AI. Still, customers are forced to upgrade, and the parts are built into operating systems, with no option to uninstall them.

Windows is now a big mess, and unfortunately, it's Microsoft's own choices that are making consumers look for other options.

Valve doesn't need a big plan to get rid of Windows. Microsoft is already doing it. Step one for Valve was simply being better than Windows. Step two doesn't exist because step one was enough.

Many of us believe AI's biggest contribution to the decade, outside of designing YouTube thumbnails, might be accelerating the shift to Linux. It's not hard to imagine a future where AI-induced RAM crunch pushes entire generations of gamers straight into the arms of Linux-based systems.

And with Microsoft pushing Copilot onto everyone—even though almost nobody likes it—this shift feels inevitable.

We view AI as spyware run by people who will gladly sell data to the lowest bidder. These companies raise subscription fees, cut support for older software, and force people into newer products.

Google's situation is no better; search results are now buried under AI summaries. Sites lose revenue, and ironically, Google undermines itself. Microsoft does the same—spends money on AI, then drives away its own clients.

Steam, Valve, and the Push for the Living Room

Valve's approach is different. They double down on community. But taking over desktop market share was slow, so Valve shifted focus. "Let’s take over more of the console space instead." The issue is pricing. The Steam Machine is expected to be closer to a low-end PC rather than a console, and budget-friendly consoles are disappearing.

Valve doesn't sell hardware at a loss. They're loved by gamers, but they're still a business. Creating custom hardware and a custom OS is expensive, and there's no universe where they take a massive loss just to make it cheap. We think the Steam Machine will cost at least $800, and it might drop to $700 during holiday promotions. There probably won't be a $400 or $500 version.

To make things worse, RAM costs are going through the roof, with some kits rising by 300% to 500% over the last few months. This means that 2026 is not a good year to release a new system. Valve is still a business, and everything depends on its leaders.

If Lord Gabin loses his battle with time and someone else takes over—especially someone focused on pleasing shareholders—we're back to square one. Valve must never go public if we want their consumer-friendly philosophy to survive.

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Why Pricing Matters So Much

Steam Machine has to sell well for developers to properly optimize games for Linux. A strong user base means studios will take Linux support seriously, which benefits all PC gamers. If the system somehow sold 20 million units, it could outperform some DIY PCs with better specs simply because of optimization.

Many people still buy pre-built PCs when they upgrade. A Steam Machine could become the obvious choice for newcomers who don't care much about resolution and just want a reliable entry point into PC gaming. Mods alone create a massive advantage over traditional consoles.

Games like Fallout, Skyrim, and Cyberpunk change dramatically with mods—going from a 7 to a 9.

Steam's huge library of lower-demand titles also guarantees that new users will have plenty of games that run well on mid to high settings.

And unlike consoles, you don't need to buy $70 games every time. Steam sales make expanding libraries easier and cheaper.

Why Corporations Won't Buy Thousands of Steam Machines

Some people imagine companies buying hundreds of Steam Machines for their offices. But the Steam Machine will almost certainly be limited to one per Steam account at launch, just like the Steam Deck was.

Logistics for corporations would be ridiculous—creating countless accounts, tying them to corporate emails, and buying one unit at a time. They'd be better off buying small general-purpose desktops.

This is also why Valve doesn't reveal the price early. Just by people guessing, they're getting a lot of free PR.

Dream Launch Lineup and Power Concerns

Think about how great it would be to get Half-Life 3, Left 4 Dead 3, and Portal 3 all at once. It would beat every console lineup from the last two generations, but it won't happen.

Some enthusiasts say that an $800 Steam Machine is fine because it's "a PC, not a console." But the price-to-performance ratio is important. It's hard to sell if it's weaker than a PS5 from five years ago and costs a lot more, especially with the PS6 coming out soon.

If Valve wanted to soften the blow, they could bundle in coupons or game collections to help justify the price and lock newcomers into the ecosystem. But until the price is announced, the discussion is mostly hollow.

Valve stopped making the LCD Steam Deck not long ago, maybe to save money and focus on the Steam Machine instead. This is especially true as RAM prices are rising due to AI.

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Payment Processors and Censorship

Another concern for Steam is payment processors. Processing payments is their only job. That's all. They shouldn't be able to stop people from buying things or from taking down stuff. But they do.

Ironically, the censorship they impose damages their own image far more than any of the games they target. Gamers are, without a doubt, the worst enemies corporations have online. The relentless focus and persistence of the gaming community can be devastating.

We need new payment processors. Valve could easily create one—call it Steam Wallet or Steam Coin—and if it were listed publicly, gamers would adopt it instantly just to spite Mastercard and Visa.

What Comes After Steam Machine

Many of us are convinced the next big project will be a phone. It's the natural extension of Valve's ecosystem and a major step toward the full living room experience Lord Gabin seems to envision. And since Valve is one of the few big tech corporations we don't dislike, it's really intriguing to watch what they accomplish next.

Valve works harder than other companies to maintain goodwill, even amid controversies like the loot box disputes. It will be interesting to see what they do next, especially with Steam Machine.

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