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It's only 400 here.
And while I will agree 64 gb is a pittance given the size of typical high or even middle end games... Paying 120 dollars more for an ssd and profile theme really doesn't seem like the way to go... especially when a comparable ssd might be 60 dollars in comparison... Same with the 512 model... when if the pcie slot is the same, 1TB of memory is 180 dollars.
I cannot really speak against the price too much however, as the mere existence of it has spawned a naughty or nice sized list of things I can do with it, as well as excessive amounts of games I have typically ignored being tolerable to play in a comfortable couch setting.
It is what it is, I bought that model, and plan on doing what I can to make it stand up to the better ones with as little money as possible.
Then take a look at the rest of the market. Gpd win2/3 and ayaneo all have a launch price around $800 or more. Its not out of the question valve is losing money or breaking even on 1 or more SKUs.
Please re-watch what Gabe said in the interview.
"we had to be very aggressive in terms of pricing of the deck"
"price point was secondary and painful"
It means they are either taking losses in some SKU or breaking even in worst case. Why in heck would he say price is "secondary and painful" that make no sense if its a critical aspect of it. Valve first and foremost want to present its own brand while proving to other companies they could build something that perform this good while maintaining low price ranges.
You want why don't you make a PC handheld with 1 TB Nvme on it for 399$.
Guys don't mind Skeletor aka Einsberg. If Epic Games were to launch this similar thing. He would be praising it.
There is nothing BS about you being Eisberg though.
I don't think their base model is making a profit for them. Anyways neither i or you work at Valve. Valve will not talk about it either. The only info we have is the pricing is painful for a reason https://www.ign.com/articles/steam-deck-price-valve-gabe-newell-400-dollars-painful-but-critical.
Also, should it turn out to be sold at a loss, I'm sure it will be a neat tax write-off for them. But we can only speculate and may never know about the financial (un-)success of the Deck as Valve is a private company. I'm sure Valve is strong enough not to go broke about it.
By the way, other console manufacturers are not turning a profit on their consoles either, but on the games sold through their distribution network and licencing fees, though these are closed systems.
When Gaben said pricing was "secondary" and followed with "painful" I don't think there's room for interpretation. It means he didn't care about healthy profit margins when trying to establish this new product category.
If Valve as software company can do this, surely more established businesses in the hardware space can definitely do better. Dell did something last year but never committed. I think with this move Valve will encourage others to hop in instead of leaving this void to inexperienced crowdfunded businesses.