I wonder if they're selling at a loss? Valve can afford it, plus it'd be no different than Sony/Nintendo/etc subsidizing hardware since they make most of their profits from software sales.

Only difference is that, unlike traditional game companies, this Steam Deck thing isn't a walled garden. But of course, Steam has a near monopoly on PC gaming so it's unlikely that'll be a problem for them.

I would bet that they do sell at a loss. There's an interview with Gabe[1] in which he keeps repeating that the price point was painful. He is very vague about it but he also mentions some calculus like "they'd have to sell 8 games to be profitable". So I have no doubt they're doing it like the consoles do it.

[1]: https://www.youtube.com/watch?v=4FXgDAF6QpM

I doubt it.

If Valve isn't locking the hardware down, but is subsidizing it, then they might run into a situation where cryptominers (or some other group) start buying these things up in bulk, but never playing any games on them.

I could see owning one of these as a non-gaming desktop.

They actually did a pretty smart thing, where you can only order it if you have a steam account that has spent money on steam before this month. I would guess that they also limit the amount of Steam Decks you can order as a single person so it would be some effort to start buying these things up in bulk.

Genius. Man everything about this excites me for the first time in a long time, about anything

For what coins is PC hardware competitive with ASIC?

Ethereum, because there are not ASICs for it. See the news about recent crackdowns on mining in China, that's where all the GPUs were at, mining Ethereum.

Ethereum is moving away from proof of work

While this is true they are taking their time. Here is an article from 2017 that suggests they will have finished the transition to proof of stake by 2018:

https://www.crypto-news.net/what-does-ethereums-proof-of-sta...

I'm just making up hypothetical my friend. I can't really predict what these might be useful for as an alternative to gaming, but the world is full of bright people who exploit any opportunity.

Nintendo sells its consoles at a profit. It's why their hardware is always "behind" the other guys who are, as you say, selling you $4 of power for $3 and hoping to make it up over time on ecosystem purchases.

Similar products (look up GPD Win for example) are roughly in the same ballpark cost wise, and that's without much economy of scale.

To be honest, I don't think your assumption is that far off. The way that Gabe talks about this device, I feel like the purpose is simply to extend the PC gaming market, which is essential for Steam.

https://www.youtube.com/watch?v=4FXgDAF6QpM

I don't see why they would, they'd be on the hook for service costs as well.

That’s a really good point, viewing this as an accessibly-priced entry into PC gaming makes it even more attractive.

If current trends around availability of discrete desktop graphics cards hold out, then it'll be even more attractive.

PC hardware prices will affect this as well, since this is based on shortages and high demand... basically these will be almost impossible to get outside of secondary market.

I'm calling it now, people looking back on this thread six months or a year from now will have found your speculation false.

I gain/lose nothing for being right/wrong, it's just the status quo.

I'm waiting to buy a laptop I want for some months now, still not available.

Unless this custom APU for Steam Deck is made in a special foundry with a special process, then they will be in line just like everyone else.

Plus scalpers love this shortage to make easy money.

I can buy a decent gaming laptop right now, but it's much harder to get a desktop GPU. I'm guessing all stock goes to OEMs.

You don't think that Valve was waiting until the supply chain was ready before making this announcement?

You think Sony Computer Entertainment didn't wait until the supply chain was ready before launching the PS5?

It's not about being ready or not, it's about supply and demand.

An example from Valve themselves from early this year regarding Index, an interview with Gabe:

“We actually have components that are manufactured in Wuhan and when you’re setting up your manufacturing lines it doesn’t occur to you that you’re suddenly going to be dependent on this peculiar transistor that’s sitting on one board that you can’t get,” Newell said.

“Everybody ended up running into the same problem simultaneously — you go from, ‘Oh, we’re in great shape,’ to, ‘What do you mean Apple or Microsoft just bought the next two years’ supply of this just so they could make sure they aren’t going to run out?’ You went from a situation where everything was getting done just in time to people buying up all the available supplies.”

Newell says these constraints are also why the headset still doesn’t ship to some markets like New Zealand or Australia. “The only thing keeping us from shipping in New Zealand at this point is just getting enough of them made — we’re very much manufacturing constrained.”

[1] https://uploadvr.com/gabe-newell-index-supply-shortage/

PS5 and Xbox are using PC hardware too. The only difference is that they might have secured some supply for those customized parts in advance.

A steam machine if you will