Due to memory shortages and rising prices, which create ongoing uncertainty in the tech industry, the prospects for affordable gaming consoles are becoming less optimistic. A well-known analyst has shared his thoughts on the potential cost of the Steam Machine and what the next Xbox might look like.

The Impact of Memory Shortages and Artificial Intelligence

It's not just the gaming industry— the entire technology sector is facing serious challenges brought on by the rapid development of artificial intelligence. Memory shortages are affecting the production of consoles, PCs, and smartphones, while the integration of AI into game development is becoming an increasingly relevant topic of discussion. As a result, future hybrid devices like the Steam Machine and the new Xbox could end up being significantly more expensive than previously anticipated.

Expert Opinion on the Future of Consoles

Matt Piscatella, Senior Director and Gaming Industry Advisor at Circana, told GamesRadar+ that the current uncertainty and chaos make long-term planning difficult for manufacturers. According to him, companies like Valve struggle to set prices for their devices due to the instability of the US economy. Although the Steam Machine is a very interesting hybrid system that will offer access to a vast game library from day one, it wouldn't be surprising if Valve sets the price at $1,000.

Piscatella added, “I'm glad I don't have to make those decisions. I can imagine a $1,000 price tag, but I could also see them lowering it to $700 if they decide to absorb some of the costs themselves.” In his view, the key questions remain: where will Valve source its components, how many devices are planned for release, and how will they be sold?

Hybrid Devices and Market Trends

The Steam Machine will essentially be a PC that easily connects to a television. A similar approach appears to be planned for the next generation of Xbox as well. “I think the next Xbox will be a lot like the Steam Machine: first a PC, then an attempt to offer the convenience of a console on that platform,” the analyst believes. There have been reports that the new Xbox will run on a customized version of Windows 11, allowing it to launch both Xbox games and older titles, as well as a wide range of PC programs, including stores like Steam.

Piscatella also noted that hybridization is the main trend in the gaming industry. “The line between PCs, consoles, handheld devices, and even mobile platforms is blurring—not just in terms of the types of games and how they're played, but also in terms of content, which can now move from platform to platform along with the players,” he emphasized.

Outlook for New Device Releases

Nevertheless, neither of the two hybrid consoles has a confirmed release date yet. Valve recently announced the need to revise its launch timeline, but the company is still aiming for the first half of 2026.

Meanwhile, Microsoft expects the current generation of Xbox to remain relevant for the foreseeable future, even after the arrival of new Xbox and PlayStation 6 models.