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If they were really worried about people using this as a standalone PC (and let's be honest, why would you bother with these specs and prices), then they could've bundled it with Steam credit. Valve is a huge company, them releasing it at this price (without a controller, for a gaming machine) was a conscious choice IMO....it was going to be difficult to subsidize this, because you can just use it as a PC without buying any games through Steam.
Given that this is a completely custom SFF PC with a custom OS, I think the Machine is fairly priced. The only issue is that with the current memory and storage pricing, it's hard to justify the value proposition.
I dunno, it seems like a pretty mediocre price. Right now, you can get an RTX 5060 gaming laptop with double the storage for $100 AUD less, compared to spending $1.6k for a 512GB Steam Machine with no controller. And as I mentioned earlier, it's not even as powerful as a base PS5 for $1k, let alone the Pro for $1.4k. Both of those come bundled with a controller, too.According to the LTT video, and as mentioned above, if you subtract the recent Steam Deck price hike from the $1050 MSRP, you'd get $750, which is definitely a very reasonable price for the hardware.
I took into account the inflated price due to the NAND shortage, when I did some rough numbers in my previous post.