They’re buying the parts directly from the manufacturers though, so cutting out the retailer middle-man could offset the R&D costs.
They’re buying the parts directly from the manufacturers though, so cutting out the retailer middle-man could offset the R&D costs.
Uebercomplicated@lemmy.ml 3 weeks ago
Research and development is probably very high when you consider Proton, SteamOS, and the semi-custom CPU and GPU. Something between $50 to $100 million would be typical. Silicone is famously expensive in R&D, Proton has continuous costs (and has for quite a while now) that rack up, and SteamOS is literally an operating system. That’s a lot of salaries to pay.
I reckon they’re taking advantage of being private and playing the long game. Very, very long game. They’re not really in danger as long as Steam is successful, but I can’t blame them for wanting a decent gross margin so they can at least cover hardware costs. Especially with memory prices right now, I wouldn’t be surprised at 1000€ here in Germany, though I wouldn’t be happy about it. I would happily buy at 900€ (≈$1040), and be ecstatic at 800€ (≈$920).
SparroHawc@lemmy.zip 3 weeks ago
Personally, I wouldn’t include Proton in the costs of the Steam Machine. The Deck already is benefiting from it immensely, and I would consider it to be a cost of expanding into Linux gaming in general - especially with the Lenovo handheld and other devices starting to jump on the bandwagon as Microsoft continues to take repeated dumps on their userbase. Its R&D costs are being won back by the market % Steam takes on any games bought and played in Linux, which means that it can benefit from that continued revenue stream rather than the one-off hardware sale.
The hardware has to break even. The software already has.