Valve's new hardware will NOT be loss leaders

9 months ago by mnemonicmonkeys to c/games

Can everyone please stop claiming and speculating that Valve's new hardware will be loss leaders? If you watch LTT and Gamers Nexus's first videos on the announcement, they actually spoke with Valve's engineers. And the Valve representatives already said that the new hardware WILL NOT BE LOSS LEADERS.

There isn't even evidence that the Steam Deck was a loss leader. All GabeN said was that the lowest cost launch model was priced "painfully", which doesn't necessarily mean it was sold at a loss, it could easily have been sold at a very tight margin.

And no, low margins does not meet the definition of a loss leader. A loss leader is a product sold below cost, in that every unit sold actually costs the seller money.

I get the desire to speculate on new hardware. It's fun and it helps pass the time until we hear more info from Valve. But there's limits to what is reasonable. Valve has already stated that the new hardware won't be loss leaders, so hoping and/or claiming they are isn't reasonable.

Sorry for the rant, but all of the comments that seem to have only skimmed headlines are quickly getting to me

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krooklochurm 16 points 9 months ago

To be a loss leader doesn't the need to lead to something?

The only way it could make sense that they're selling these at a loss would be - oh yeah. They're coming straight for Nintendo / Sony / Microsoft now, huh?

The day I see a steam console in wal mart is a day I will be very happy.

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porkloin 9 points 9 months ago

Some of the third party steam machines from 2015 actually had some distribution to Walmart stores. I saw it in the flesh!

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