Anticipation for the release of Valve’s new VR headset is growing, as the company has already started accepting pre-orders for the device. However, the official price and release date for the Steam Frame have yet to be announced. The launch could be affected by rising prices for Snapdragon chips produced by Qualcomm.

Component Price Increases

On June 24, it was revealed that Qualcomm plans to raise the cost of its chips by a double-digit percentage. The new prices will take effect starting September 1, possibly after the Steam Frame’s release. This decision is expected to impact the VR device market.

Previously, shortages of memory and storage components had already delayed the launch of both the Steam Machine and Steam Frame. Increased demand for components from data centers working with artificial intelligence has led to a shortage of parts. Now, the price hike has also affected Snapdragon processors, which are used not only in VR devices but also in smartphones and some laptops. The manufacturer explained the price increase by citing the inability to offset rising production costs.

Impact on VR Headset Pricing

The new version of the Index device is equipped with a Snapdragon 8 Gen 3 system-on-chip. While the price increase is expected to be relatively minor, it is unlikely that the Steam Frame’s cost will rise by hundreds of dollars. Nevertheless, the projected retail price for the VR solution has increased since its initial announcement.

Price Estimates

The headset, capable of operating independently and running VR games, features 16 GB of unified LPDDR5X memory and UFS storage options of either 256 GB or 1 TB, which has also contributed to higher production costs. Initially, Valve aimed to set the price below $999, similar to the previous Index model. Optimistic forecasts suggested a price around $800, but now a price above $1,000 seems more likely.

Ultimately, the Steam Machine turned out to be more expensive than expected. This was attributed to the inability to stockpile necessary components before the memory shortage worsened. Ideally, the company would have purchased Snapdragon chips before the price hike on September 1.

The State of the VR Market

So far, the crisis has not had a significant impact on the VR gaming market. However, in April, the prices of Meta Quest 3 and 3S devices increased by $50–100. The use of more expensive components could make the Steam Frame less competitive compared to more affordable alternatives.