The Steam Machine is currently a hot topic, and everyone is wondering what it really is. Should we consider it a PC or a console? Is it trying to attract users away from the PS5 and Xbox Series X|S?
Some analysts have shared their views, explaining what they believe the Steam Machine truly represents.
Analysts’ Views on the Steam Machine
Joost van Dreunen, professor at the NYU Stern School of Business and former CEO of the gaming market research firm SuperData Research, believes that the Steam Machine is “a console that refuses to admit it’s a console.”
However, that doesn’t mean it aims to compete directly with the PS5 or Xbox.
“Valve isn’t trying to beat Sony or Microsoft at their own game so much as rewrite the rules by blurring PC and console into one stack,” van Dreunen explains (thanks Gamesradar). “It performs roughly on par with a PS5, lives under your TV, and boots like a console, but the business logic is pure PC. The real competition is over distribution control, not teraflops.”
A Device for a Niche Market
Dr. Serkan Toto, CEO of the Japanese consulting firm Kantan Games, believes that the Steam Machine is designed to appeal to a wide range of users by combining elements of both PCs and consoles. He considers it a promising and well-made device but remains cautious about its commercial success, suggesting that it is unlikely to achieve the same sales figures as current gaming consoles like the PS5 or Xbox Series X|S.
He continues by noting that even if the Steam Machine doesn’t become a major rival to the PS5, Xbox Series X, or the upcoming Switch 2, that shouldn’t be seen as a failure.
“In the end, the device is most probably going to serve a niche and not the mainstream – which is not necessarily a bad thing for a cash-rich company like Valve,” he explains.
Similarly, Mat Piscatella, senior director at Circana, believes that the Steam Machine will take on a role similar to that of the Steam Deck. In his view, Valve is likely to reshape and dominate a market segment where other manufacturers will struggle to compete on aspects like product design, pricing, market positioning, and promotion.
He also thinks that traditional consoles will not be the main competition, since the Steam Machine is aimed primarily at gamers who already use and invest in the Steam ecosystem.
Finally, David Cole, founder and CEO of the research firm DFC Intelligence, agrees that for now, “the Steam Machine will have a fairly niche appeal compared to PlayStation and Nintendo products.”
That doesn’t mean things can’t change over time, though. He points out that the hardware seems designed to compete both with Xbox consoles and with Windows as a gaming platform, given that it runs SteamOS.
“if Valve remains committed the Steam Machine is likely to evolve and could eventually be a console alternative,” he concludes.
