Who Is The Steam Machine Even For? Industry Expert Weighs In

Valve has introduced a new wave of hardware, headlined by the Steam Machine — a compact, six-inch, cube-shaped system built to bring PC gaming directly to your TV. But who exactly wants this, and how large is the demand? According to Alinea Analytics, around 20% of Steam Deck owners — a few million players — regularly dock their device to play on a TV. This indicates a strong interest in a simple, couch-friendly way to enjoy PC games.

Alinea’s Rhys Elliott said the Steam Machine is partly aimed at existing Steam users. It acts as an appealing second device for PC gamers who want a living-room setup without the effort of assembling a full PC or committing to another gaming ecosystem.

Elliott also emphasized that the Steam Machine aligns with Valve’s goal of making PC gaming more flexible and more accessible. With all components built in, users don’t have to deal with upgrades or hardware maintenance.

Compared to a traditional gaming PC, the Steam Machine removes the need for tinkering, cuts down on cables, and avoids driver issues — offering what Elliott calls “the best of both worlds.”

He added that the Steam Machine isn’t just for veteran PC gamers. It could also attract console players looking for the affordability and openness of PC gaming without the complexity. For younger gamers, it may even serve as an easy entry point into the PC ecosystem, especially if Valve partners with popular streamers.

Elliott also suggested that the Steam Machine might threaten Xbox’s position. With Xbox encouraging players toward PC-like devices such as the ROG Xbox Ally X — and rumors that Microsoft’s next system may be “basically a PC” — he argued that Xbox appears to be shifting away from traditional consoles. Valve, on the other hand, moved faster to offer a console-like PC experience that could appeal to frustrated Xbox fans.

If the Steam Machine succeeds, Elliott believes it could disrupt Xbox’s core value: simple console gaming backed by PC-style openness.

Pricing will play a major role in the device’s success. Elliott said the ideal price point would be $400 for the system plus a controller. Anything above $500 risks making the Steam Machine look like a pricey niche PC.

He added that a $400 price would send a strong message, especially as console prices continue to climb. The digital PS5 currently costs $499, while the Xbox Series X Digital model sells for $599.

Valve has not yet announced official pricing for the Steam Machine, the Steam Frame, or the new Steam controller, but the company says it aims to keep the Steam Machine competitively and affordably priced.