Industry analyst shares insight on Steam Machine pricing, new Xbox, more

Not just the gaming industry but the tech industry at large is in a swirl brought by rapid AI advancements. Memory shortages are affecting consoles, PCs, and smartphones, as AI incorporation in game development is being critically discussed. Because of this swirl, upcoming hybrid devices like the Steam Machine and the next Xbox could cost a lot more than expected. An industry analyst has now shared insight on what they think about the current state of affairs.

Speaking with GamesRadar+, Senior Director and Video Game Industry Advisor at Circana, Mat Piscatella, shared that this kind of uncertainty and chaos is not good for planning. For manufacturers like Valve, announcing a price is understandably challenging due to the volatility of the US economy. While the Steam Machine is “super exciting” as a hybrid system, given that a lot of gamers will have access to a huge library of games just waiting to be played on day one, it would not be surprising if Valve decides to price it at $1,000.

“I'm glad I'm not responsible for picking,” Piscatella said. “I could see $1,000. I could see them going nuts and going under $700 if they want to eat some of those costs," he added. The analyst believes that the bigger questions are where Valve will source the components from, how many Steam Machines it will make, and how will they be sold.

The Steam Machine is going to be a PC that can be easily hooked up to a TV and that seems to be the idea with the next Xbox as well. “But you know, I also think that whatever the next Xbox thing is, it's going to be just like it (Steam Machine) in a lot of ways. A PC first, and then try to offer console conveniences on that PC platform.” There have been reports of the next Xbox running a tuned version of Windows 11 but still capable of running Xbox titles, legacy games, and a wide range of PC software, including PC stores like Steam.

Piscatella also pointed out that hybridizing is what’s happening in the gaming industry. “The line between PCs and consoles and handhelds and even mobile, it's blurring, not only between the play types and how people use them, but in the games that are available, the content that goes with players from platform to platform.”

That being said, neither of the two hybrid consoles have a release date yet. Vale recently stated that it needs to reconsider launch timelines, but is still committed to the first-half of 2026 window. Microsoft, on the other hand, reportedly expects current-gen Xbox to remain viable for the foreseeable future, even after next-gen Xbox and PS6 release.