TL;DR: Valve’s upcoming Steam Machine, set for release in 2026, aims to combine affordability and ease of use. Recent leaks suggest prices around $950 for a 512GB model and $1,070 for 2TB, comparable to high-end devices, though official pricing remains unconfirmed amid memory supply challenges.
I don’t think Valve is trying to convert console players. I think (and they’ve implied) that they’re trying to offer what a lot of Steam Deck buyers have been asking for: a more powerful Steam Deck that plays more of their library. That they took a lot of cues from consoles in terms of packaging and design is really more about “the living room” than that specific customer they’re targeting.
I could have consoles, and I choose not to because I have a large Steam library and, as OP said, they’ve earned my trust.
That seems like a niche within a niche to me. The Steam Deck filed a hole in the market, the Steam Machine doesn’t. Either way that doesn’t explain the high price, last I heard Sony makes a profit selling the PS5 Pro($750) and the Steam Machine has worse specs (60cu vs 28cu GPU/ 2TB vs 500GB storage). Like others have mentioned, the price might be reseller pricing vs buying directly from valve.
Valve hardware is niche. They have (as of 2024) less than 400 people working there, and surely most of them of Steam and… maybe some games.
I really heard nothing in their presentations and interviews to suggest they have grand aspirations of shifting 10s of millions of units. The Deck I think is considered a success, and still only moved in a few years what the Switch did in a few months.
I think their target demographic is PC gamers who are just not super enthusiastic about the endless hardware grind.