Michael Douse, the publishing director for Baldur’s Gate 3, has shared insights regarding Valve’s upcoming Steam Machine, suggesting it is poised for success akin to that of the Steam Deck. He notes that the new device’s specifications are intentionally moderate, placing it somewhere between the Xbox Series S and the base models of the PS5 and Xbox Series X. This positioning is particularly intriguing, considering the original release of those consoles was five years ago, and they are now overshadowed by the more advanced PS5 Pro. The implication is that the eventual pricing of the Steam Machine may be more accessible, especially in today’s challenging economic climate.
Market Dynamics and Consumer Appeal
Douse emphasizes that high-performance PC gamers typically possess the expertise to construct a more powerful gaming rig at a lower cost than a comparable console. However, he argues that catering to a broader audience is a sound business strategy, a principle that has proven effective for the Steam Deck. This handheld device has not only carved out its niche but has also inspired a wave of more powerful competitors from brands like Asus and Lenovo.
“The Steam Deck gave birth to an entire handheld market that helped define the features of the Switch 2,” Douse remarked. He anticipates a similar trend with the new Steam Machine, predicting the emergence of more robust, Linux-based PCs designed for television use from various manufacturers, including Ayaneo and others.
Possible that living room will not be dominated by a handful of branded machines rather that the war for the livingroom will be storefronts, with many many manufacturers putting out the hardware. In that sense Valve & Xbox have the upper hand. (Support for 3rd party hardware).…November 13, 2025
Douse further elaborated on the “massive opportunity” present in the pre-built PC market, particularly for devices intended for living room use. He pointed out that there is currently no established “precedent” or “entry point” for pre-built machines, which can range from 0 to over 00.
“If Valve can once again normalize and thus create that entry point, there is potential for significant growth in that new market, allowing for rapid innovation and disruption,” Douse stated. He speculated that the future of living room gaming might not be dominated by a select few hardware manufacturers but rather by a competitive landscape of storefronts, with numerous companies producing the necessary hardware. In this scenario, both Valve and Xbox could hold a strategic advantage due to their support for third-party hardware.
In essence, Douse’s insights suggest a shift in the paradigm of living room gaming, where the focus may transition from hardware manufacturers to digital storefronts like Steam, Epic, and Microsoft. This evolution could redefine the relationship between consumers and gaming platforms, potentially leading to a more diverse and accessible gaming ecosystem.
