Valve changes Steam Machine release date to this 'year,' second change as AI-fueled memory and shortage crisis deepens — official announcements went from 'early 2026' to 'first half of 2026' to 'this year'

Source: Tom’s Hardware

Image credit: Tom’s Hardware

Background

Valve announced its second‑generation Steam Machine in late 2025, generating excitement for a console‑PC hybrid. However, a global memory and storage chip shortage—driven by the rapid expansion of AI infrastructure—has caused component prices to skyrocket, forcing Valve to delay the launch.

Release timeline

• Initial plan: Deliver the consoles in the first quarter of 2026.
• AMD CEO Lisa Su’s comment (Q4 2025 earnings call): “Valve is on track to begin shipping its AMD‑powered Steam Machine early this year.”
• Valve’s subsequent update: Delayed the release to the first half of 2026 and announced a reconsideration of pricing.
• Latest announcement (Steam Year In Review 2025): All three Steam Machine models will ship this year (2026), though no specific dates or pricing details were provided.

Pricing and market positioning

• Valve has indicated that it will not subsidize the console’s cost, unlike Microsoft and Sony, which sell consoles at a loss and recoup expenses through game sales.
• The Steam Machine is essentially a mini‑PC that can be user‑modified, suggesting a higher price point than mainstream consoles.
• Estimates for the 1 TB configuration suggest a price above $1,000, especially as memory and storage component costs continue to rise.

Impact of the chip shortage

• RAM prices have surged by roughly 500 %.
• Certain SSDs have seen price increases of up to three‑fold.
• Analysts predict that the entry‑level PC market could disappear by 2028 if the shortage persists.

These pressures affect not only the Steam Machine but also other Valve hardware such as the Steam Deck. A resolution to the memory and storage constraints will be crucial for Valve to deliver a competitively priced console in a timely manner.