"Honestly, it's still getting worse" - Valve Steam Machine engineer says component prices are still rising, potentially paving the way for a price increase

Key Points:

• Valve's Steam Machine launched at a high price of £879 ($1,049), which was already above their initial target due to rising component costs.
• Component prices have continued to increase, with Valve engineer Yazan Aldehayyat noting that bulk supply costs are currently 3 to 6 months ahead of retail price trends, indicating further price hikes may be imminent.
• This memory and component shortage is affecting not only Valve products but also major consoles like Xbox, PlayStation, and Nintendo Switch, with Microsoft already raising Xbox Series X/S prices and predicting component costs could double again by 2027.
• Sony and Nintendo have also implemented price increases for their consoles, reflecting ongoing supply chain pressures driven by demand for RAM and storage, especially from AI datacenter needs.
• While Valve hopes the pricing crisis will eventually stabilize, there is concern that elevated prices may become the new normal for consumer electronics if shortages persist.