Valve has delayed the release of its second-generation Steam Machine for a third time, moving the launch window to simply "this year" due to a global memory and storage chip shortage driven by AI infrastructure demands. The company cites challenges with component shortages and pricing, noting it will not subsidize the console's cost, which may make it more expensive than competing consoles.
The main topics covered are the repeated delays of the Steam Machine, the impact of the AI-driven memory and storage crisis on hardware pricing and availability, and Valve's pricing strategy for the upcoming console.
Valve changes Steam Machine release date to this 'year,' second change as AI-fueled memory and shortage crisis deepens — official announcements went from "early 2026" to "first half of 2026" to "this year"
The AI frenzy is hitting the Steam Machine hard. Hits Hard: Valve Delays Steam Machine Launch for Third Time Amid Global Memory and Storage Crisis!
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Valve announced its second-generation Steam Machine in late 2025, with gamers and enthusiasts looking forward to the console PC’s arrival. Unfortunately, the entire world is also gripped by a memory and storage chip shortage driven by the AI infrastructure build-up, with prices spiraling out of control. Because of this, the company has been delaying the release of the Steam Machine, with the Steam Year In Review 2025 noting that it will ship the device this year.
The company initially said that it would deliver the consoles in the first quarter of 2026, with AMD CEO Lisa Su saying during its Q4 2025 earnings call that “Valve is on track to begin shipping its AMD-powered Steam Machine early this year.” However, Valve announced a day later that it’s delaying the device’s release to the first half of the year and is also reconsidering its pricing.
According to the company’s latest post, it has overcome some of the challenges that were brought about by using SteamOS with the Proton compatibility layer, and that the Steam Machine will help it realize its dream of a “gaming-first living room experience” and “an open platform for customers.” However, it also said that “there have been challenges with memory and storage shortages,” but it said that it “will be shipping all three products this year.” The company still hasn’t given any specifics, though, allowing it to be flexible when it releases the Steam Machine and at what price.
While we still don’t know the Steam Machine’s MSRP, it’s been noted that it will likely be more expensive than competing consoles like the PlayStation 5 and Xbox Series X|S. Valve said it won’t subsidize the console's cost, unlike Microsoft and Sony, which sell their consoles at a loss and make up the difference in game title sales. This won’t be an option for Valve, though, especially since the Steam Machine is essentially a mini-PC that buyers can modify themselves. There have been estimates that the 1TB version could hit more than $1,000, especially as memory and storage chip prices continue to rise.
The Steam Deck is just one of the many victims of chip shortages driven by the AI infrastructure buildout. RAM prices have jumped by 500%, and we’ve seen some SSDs nearly triple in cost — because of this, some analysts are predicting that the entry-level PC market will disappear by 2028. Hopefully, Valve can find a solution to its memory and storage woes, allowing it to deliver a console at the right price sooner, rather than later.
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Jowi Morales is a tech enthusiast with years of experience working in the industry. He’s been writing with several tech publications since 2021, where he’s been interested in tech hardware and consumer electronics.
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Notton I don't think they'll release it, unless they can source cheap DRAM.Reply
I hope they release the controller sooner.
Meridiano
