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

  • EldritchFemininity@lemmy.blahaj.zoneEnglish
    1·
    3 hours ago

    I’d say the Deck isn’t stealing customers from the Switch because they are filling different market niches. The Switch is a portable console with portable Nintendo games made for it. The Deck is a portable PC that gives you access to your entire Steam library on the go.

    The GabeCube, however, could absolutely pull some customers of the PS5 and Xbox depending on the pricing - especially with Microsoft’s demands that every part of the Xbox division see a 30% profit margin. The Big Three isn’t going to become the Big Four, but I think it will make some ripples. Steam running in Big Screen mode is effectively a console interface, and it plays Call of Duty just like the consoles. And with Sony finally moving away from console exclusive games, it means that Steam has almost full parity with the libraries of both of the consoles going forward while also offering access to all kinds of indie games that the consoles don’t. The GabeCube can play Call of Duty and Ghost of Tsushima, but it can also play Ultrakill and Bloodborne Nightmare Kart, and neither Xbox nor Playstation can say that.

    Edit: And this doesn’t even mention old games. The Steam library has access to all kinds of old games that never get ported to new consoles when a new generation releases, meaning that its library grows in step with the consoles but you can still play your old favorites without having to keep buying them again or keep your old consoles around.