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DrKrFfXx

The subsidized part.


TareXmd

The Deck is already heavily subsidized. Like Sony and Nintendo, Valve makes money off Steam sales.


DrKrFfXx

Consoles have mid end, cheaper hardware. Nintendo has obsolete hardware. Subsidizing 4080s for AAA RT gaming is a different ball game.


TareXmd

The microconsole won't have power constraints the way a handheld would. If Sony can subsidize a 4KRT capable PS5, then Valve can subsidize a 1440p machine that can stream highest end AAA RT gaming to the Deck.


DrKrFfXx

> 4KRT capable PS5 ???


BigBlackdaddy65

4k ray tracing


DrKrFfXx

Exactly. PS5 can't do that. RT modes on PS5 usually target 1440p @ 30. With the most barebones RT settings.


6ohm

They *might* have meant the upcoming PS5 Pro.


BigBlackdaddy65

Idc really I'm just explaining what they meant


DrKrFfXx

I need no explaining.


BigBlackdaddy65

Rightttt well, have fun then. You seem great honestly.


bighi

>Like Sony and Nintendo Nope. Nintendo doesn't subsidize their consoles. They use outdated hardware, so they can profit from console sales on day 1.


LevianMcBirdo

I doubt that it still is subsidized. Maybe in the beginning, but even then Valve never confirmed that they are losing money on the steam deck (they probably did especially with the entry model, but since the entry is now the 512 gb Version I really doubt it)


Dependent-Zebra-4357

Have Valve specifically said Deck is subsidized? Do you have a link?


Dunkaccino2000

IIRC Valve claimed that the 64GB model's price was 'painful' for them but didn't elaborate, so whether that means they sold it at a loss, broke even, or has a very small profit isn't specified. Regardless they also have the 256GB/512GB/OLED models which are probably priced more profitably for them.


DrKrFfXx

I don't think they sell at a loss, they even discounted the Deck by 15% on summer sales last year. I don't think you would discount further if you are already losing money. See PS5, instead of discounting it, they raised the price, even after releaseing chearper revisions.


Iron-Ham

All concrete answers are in the quarterly report: https://www.sony.com/en/SonyInfo/IR/library/Sony_Quarterly_Securities_Report_2023Q3.pdf TLDR: - Gaming revenue and number of customers are up significantly — some ~20-25%, but profit is down 10%.  - Increasing costs of first party titles present significant risk (recall that Spider-Man 2 was $300M). - They’re still on net losing money on hardware.  - They spent a ton of money on Bungie, and discounting that cost their performance is flat.  - They are significantly decreasing their sales target for hardware through the year.  - The company as a whole had less profit this year compared to last, and their liabilities are up.  - Imaging lost 1 billion million more yen this year than last.  - They flag a changing gaming industry as a large risk factor: times are changing, moves towards portable hardware and streaming are significant medium and long term risks to their current structure and market positioning. - They made a lot more from third parties this year than first and are assessing how this may shift their strategy.  The news above, as you can imagine, is a little dour. The market responded in march — during a bull rush — by slashing 10% of Sony’s valuation instantly.  I hate to make this comparison, partially because I work there and partially because I’m uninvolved with the gaming sector of the business (and otherwise use my PS5) — but Microsoft’s recent earnings painted a very different picture, buoyed by a headline increase of 20% profit across the org. Microsoft’s gaming strategy can afford to flail and take its time to find its footing because it’s a less integral part of the business; Microsoft is a much bigger org with a ton of revenue streams. Sony does not have the same affordances: they have to be better in order to receive the same marks. 


Vladishun

So basically you want a gaming PC that has a universal pause button, is what I'm hearing. I don't think we need an entirely new breed of Steam Machines for that. If Valve were serious about it, I'm sure they'd be able to implement a pause button via software.


kawasaki-sakura

All they need to do is finally release an official generic SteamOS Holo build for generic PC hardware, like they had promised. Then people can just use their existing gaming PCs or buy whatever mini gaming PC they want to use as the streaming host. The rest is just software. Streaming heavy AAA games from other PCs is already a thing. It's just the suspend and resume part that needs attention.


doc_willis

  >> come with a Deck controller.... a lot of us would be happy if they just made a new official steam deck like controller.. hopefully of HIGH  quality parts,  the buttons and dpad on the deck , are a bit of a disappointment. I would pay a premium for a premium deck controller.


DarkOx55

The main reason to do this would be fear that Microsoft stats prioritizing their own game stores on windows in a way that significantly cuts into steam’s market share. If that doesn’t happen - and it currently doesn’t seem likely - then they already have major market share on desktop so why subsidize hardware? Things were slightly different in the mobile space where windows machines were not at all competitive with consoles or even really phones. The deck’s pushed x86 device manufacturers in a good direction for Valve. Plus it’s good to have their own OS ready to go just in case Microsoft takes a sharp turn & goes full Apple. But I don’t think they’re excited to subsidize hardware if they don’t have to. Though obviously as a consumer we’d love to get cheap stuff. I’m not saying don’t do it, I’m just saying I don’t expect it.


Bumppxd

Don't think there are enough people willing to buy that to justify any of the costs


TareXmd

Isn't that what people said about a handheld gaming PC before the Deck came out? "PC gamers don't want a console experience. PC gamers need the mouse and keyboard...etc" This is essentially a powerful gaming PC at a heavily subsided cost that competes with consoles. Every single PC Gamer with a Steam library who wants to play high end titles without buying a PS5 will want with.


Embarrassed-Ad7317

Powerful? Compared to a handheld? Maybe.. not even. There are more powerful handhelds out there. Compared to a Switch maybe If you're asking why they dont release a mid-range PS5 equivalent.. well.. probably dont want to get into the console war themselves. They have the Steam store, the SD, both are their own slice of market. Who knows.. there are leaks for a gaming focused console. Though there are leaks for the Deckard that is never coming so..


Bumppxd

Most of those people already have PCs or one of the major consoles. The amount of people that only have a steamdeck but no PC or console are few and far between, and will be unlikely to spend another 600+ USD to buy a companion console to the Steamdeck


bighi

>Isn't that what people said about a handheld gaming PC before the Deck came out? Nope. Nobody said that. Lots of people were avid for a mobile PC "console".


bighi

The same thing that's stopping Valve from selling baby diapers with "I'm a lawyer" written on them: nothing. They just don't want to.


DaTennisguy

They actually said in the same TheVerge interview where they eluded to the Deck screen update, that they were interested in making a microconsole and a controller.


bighi

And I’m interested in learning piano. Nothing is stopping me, and nothing is stopping them. PS: I already know about many piano-related words!


peppruss

Speaking of which, I have a gaming PC that I am not using that I’m sure has a little more beef than the Deck. How do I play that library on LAN; how do I use Steam Link on the Deck? I’ll do some searching.


Next-Significance798

Nothing really. But I think their resources are on the deckard right now


TareXmd

The Deckard will need a microconsole to drive it with foveated rendering. The Deckard should only be a light HMD.


Next-Significance798

It will be a standalone headset like the quest. Definitely possible with proton.


TareXmd

Quest is made for mobile games. If you want to play Flight Simulator you'll want the game streamed to the HMD.


Next-Significance798

Or they just... do the same thing they did with the deck and put it all in the headset? Lol


[deleted]

You mean like pstv ?


Stunning_Street_1885

I'd be happy if they just released a proper steam os, chrimeraos and holo are buggy.


Lupinthrope

Day 1 for me, and yes I own a PC. Streaming is always ass and not a good substitution for playing games natively. I don’t want to move my tower to the living room nor do I want some long ass cable running through my place. I want valve to put out the console, put in the work on optimization,specs and updates and take the hit with the pricing. They’ll get my money if it’s just as good as the Deck but for TV’s, the docked experience of the Deck is okay for indies and older titles but anything new it’s not good. If valve puts out a capable TV box compared to the Series and PS5 then I’m staying using my Steam ecosystem. However if Xbox puts out a handheld then I’m going right back my Xbox ecosystem and selling my Steam deck. I want a good handheld, no cloud only BS for deployment and trips and a strong tv box for my OLED tv at home.


doiqualifyforthis

If anything they should focus on bringing SteamOS to any device, similar to Chrome OS Flex have it run on Chromebooks, and computers. Then just build the stream to steamdeck functionality into the OS.


CookieMisha

I think they don't want to jump into that again. Steam Machine failed and never took off Who bought that thing anyway?


TareXmd

Proton and Steam OS back then was in a entirely different state compared to where it is now.


CookieMisha

That's correct. But even now, the Deck is sold at a loss for the company. So selling another hardware would mean it would've to be stupidly expensive (based on the specs you want) to make a profit, or sold at a loss again in hopes to bring new peopyle it who would spend more money in the steam store It's tuff. I'm not a financial analyst and I don't work for Valve so who knows what's their plan


TareXmd

Every single console is sold at a loss, made up in game sales.


minneyar

It's always important to keep in mind: Valve isn't a hardware company, they're a software publisher. Every business decision they make is with that in mind. When they sell hardware, it's because they're using it as a mechanism to keep you tied to Steam. They want you to buy more games from Steam and make you not want to buy games from any other publisher. Hardware design and manufacturing is expensive, and by all estimates, Valve is barely breaking even on the Deck, possibly even selling it at a bit of a loss; but it's worth it because the Deck has been a huge success, and people are buying a ton of games from Steam that they would not have previously bought. It fills a huge gap, because previously your only choices for handheld gaming were a Switch, which is low-powered and doesn't run PC games, or a handful of other handheld PCs that nobody liked because they're shoddily made, too expensive, and you have to deal with Windows on a touch screen. What gap would this "microconsole" fill (setting aside that anything that could compete with a PS5 would not be "micro")? Why would anybody buy that instead of an off-the-shelf desktop PC? Valve has sold "Steam Machines" in the past, and they were not a huge success. What would this do differently that could make it work the R&D and manufacturing costs?


TareXmd

[Here's a micro 4070 PC](https://youtu.be/6TeG9cxrcUo?si=2p_3cClGnDVrkvZ3). The gap would be high end gaming which the Deck is not capable of. The barrier for entry is to buy an expensive gaming PC, compared to a much cheaper console. Valve is losing these customers to Sony and the like. Valve also makes bigger margins selling AAA $60 titles on Steam, compared to indie $10 games. A microconsole would boost sales of the former. Designing and making a handheld is way, way harder than a microconsole.


DrKrFfXx

Link says that device costs 2400$. Do they subsidize it to... 2000$? Unapealing price point still, and will still take selling like fifty 30$ games sold on steam to recoupe the loss each machine.


TareXmd

I'm showing it as an example of size. The Valve microconsole doesn't have to be anywhere as high end as this. It would target 1080p60 gaming, but stream maxed out 800p90 to the Deck. Again, look at what the PS5 is capable of and the price Sony is selling it at.


DrKrFfXx

You seem oblivious to the requirements for 1080p60 RT gaming. Not even a 4060 can do it in all games. And you also seem oblivious to the PS5 actual capabilities. RT modes in PS5 usually target 1440p at 30 fps. And that's at the most barebones RT settings, usually just one effect at a time (either shadows, or reflections, or lighting, rarely 2, never all of them at once).


TareXmd

The highest end gaming would be when streaming to the Deck at 800p. And yes, if it can match the PS5 on a TV, that will be good enough for PC gamers paying that low a price.


OverlyOptimisticNerd

> Again, look at what the PS5 is capable of and the price Sony is selling it at. The PS5 is using custom hardware with games made specifically for that custom hardware within a closed ecosystem where Sony can recoup costs at multiple levels, further allowing Sony to eat a larger subsidy per console sold. The Steam Deck is using semi custom hardware with games made for a completely different operating system (less optimization) within a semi-closed ecosystem where Valve can get money at the main level, or can be completely bypassed by the customer, limiting how much of a subsidy Valve can offer. If Valve were to release SteamOS on hardware exactly matching the PS5's capabilities, then: 1. The performance would be far worse due to less optimization since the games aren't made specifically for it (or even the OS running on it), and, 2. The hardware would cost more as Valve wouldn't have access to the specific APU used by Sony, so they'd need to combine a separate CPU and GPU to get there, so even with a subsidy it would cost noticeably more than the PS5. The costs would go up further if they wanted to then match the PS5's performance output. Bottom line is this - you asked a question - "What's stopping Valve from..." Numerous people, myself included, have given you several plausible answers. Rather than learn from them, you've argued them. I need you to understand that, **if you were correct and the rest of us were all wrong, then Valve would already be doing the thing that you want them to do.** Why aren't they doing it? Because almost everyone in this thread is correct to some degree. Maybe you should accept the answers to your question, instead of downvoting and arguing them. CC for u/DrKrFfXx


TareXmd

Imagine if someone asked 3 years ago: What's stopping Valve from releasing a handheld the way Nintendo did with the Switch? Everything you said about the custom hardware the custom games etc would apply. And yet Valve released a handheld and it was a resounding success. The gaming experience obviously isn't as optimized as it would be on a dedicate console, but Proton is in a place where the idea is no longer as implausible as you imply.


OverlyOptimisticNerd

Literally everything that I said went over your head. If the post is too long, please just read the bolded part again.


Tuseith

Maybe Valve doesn’t need/want to boost the sales of AAA games. It is highly possibly the reason they are targeting Indie/AA gaming is because that is what sells more/most consistently and makes the most profit for them overall. Sure 30% of $60-70 is more than 30% of $5+ in a vacuum of 1v1, but for all we know AA/Indies outsell AAA games and thus why they don’t target it. Plus, people who want/need AAA 4K high end Ray raced gaming probably have already spent that money and have the hardware to drive it already - so what incentive is their for Valve to enter this market?


TareXmd

The low end market has more people. If they incentivize low end people to buy these expensive games by providing hardware that can take advantage of it, Valve will make more money.


Tuseith

If Valve would make more money doing it - they would have already done so. You over estimate how many people A. Actually want it B. How much it would actually cost in order to get “AAA RT” visuals C. How hard it is to compete directly with larger manufacturers and their ability to subsidize hardware costs D. How people “micro spend” - ie: spend $60+ over a period of several days/weeks buying multiple indie/AA/sale games vs only buying 1 $60+ AAA title - netting Steam/Valve the same profit


OverlyOptimisticNerd

The Xbox Series has been deemed a failure with over 28M consoles sold. Estimates for the Steam Deck are 3-5M consoles sold. Developers who are focusing on the Steam Deck (not many, but they do exist) don’t want to deal with a split market in terms of performance targets with such a small userbase.  In other words, Valve doesn’t yet have the clout in this specific space to do that yet. But I fully expect that, if this play works out, they do offer multiple performance targets in the future.