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Steam Machines won’t be making their manufacturers a lot of money

Monday, 19th May 2014 19:15 GMT By Sherif Saed

Steam Machines are not going to be very profitable for their manufacturers, according to statements made by Alienware and echoed by other companies which are also producing the machines.

Speaking to The Wall Street Journal [paywall], Frank Azor, general manager of the Alienware game division said, “It’s going to be very challenging.

“This will absolutely be the least profitable system we ever sell.”

Further comments from Kelt Reeves, president of Falcon Northwest Computer Systems, another one of the manufacturers currently working on its Steam Machine, agreed with Alienware’s statement adding that “If anyone can do this, Valve can do it.”

Matt happens to think that the whole Steam Machines thing is very convoluted.

Thanks, Gamasutra.

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7 Comments

  1. POOhead

    vavle slowly cannibalising the whole pc and gaming market, wake up people!!

    #1 2 months ago
  2. Soong

    Hooray for Valve! All hail our Steam Overlords! Take all my money!

    #2 2 months ago
  3. salarta

    @POOhead Valve’s doing this because they can’t trust Microsoft to not fuck them over in the future. When Windows 8 came out, Gabe had strong complaints about the operating system making it difficult for PC games and Steam to operate properly. When you combine that Microsoft is actively in the video game business AND has the most dominant operating system for computers, it’s not hard to envision a future situation where Microsoft purposely makes things difficult or impossible for Valve just to make things more profitable for Microsoft itself.

    This is why Valve has been making a big push to make games available on Mac and Linux, and to highlight those games, last year. They’re protecting themselves from anything Microsoft might do that would screw them over.

    #3 2 months ago
  4. wally10975

    @salarta Personally, I’d like MS to beef up the competition with Valve, parity with games compared to Xbox One would be a good start, and I think may help MS get some PC gamers over to Windows 8. I disagree with the statement that Windows 8 is not good for games. All my games run better than on Windows 7, despite some ancient games not running, but they run perfectly fine in compatibility mode.

    #4 2 months ago
  5. BrokenSpline

    @salarta

    It has nothing to do with that. Its a fear that MS will eventually make a walled garden with their OS because Windows 8 has its on software store for EVERY W8 user. This is a threat to Valve. THis also good news as Valve needs to be pushed as their market is shrinking as every publisher and storefront moves to digital.

    #5 2 months ago
  6. salarta

    @wally10975 I’d rather not see Microsoft involved because I don’t trust them, and the initial announcements for XBox One are perfect demonstrations of why it’s a good idea not to trust them. Valve, on the other hand, gained a near-monopoly and didn’t use it to intentionally gouge or screw people over for their own financial gain, which gives plenty of reason to trust them.

    @BrokenSpline … What you said is the same thing I said.

    #6 2 months ago
  7. BrokenSpline

    @salarta

    No its not because the fears are unfounded as MS wouldn’t throw the middle finger to 90% of the PC market. This steam machine business will never lift off the ground and these manufacturers are just a glimpse of this failure.

    #7 2 months ago

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