Well, that explains the expensive Steam Machine: Valve can't negotiate with RAM companies for better prices because "if we say no, then they never talk to us again"

The Steam Machine's base price will set you back $1,046, but it's not entirely Valve's fault. Companies manufacturing PC memory components apparently left the negotiating table and ghosted Valve altogether when they tried to haggle for better RAM prices.

The pre-built PC with console comforts is now available for pre-order, but its almost eye-watering starting price has been a big sticking point for days. The culprit, as Valve engineers have been alluding to for months now, is the ongoing RAMpocalypse (knife found in kitchen).

Speaking in an interview with GamerNexus, Valve engineer Pierre-Loup Griffais is pretty clear about what went on behind-the-scenes with RAM dealers: "Look, there's no contracts. There's nothing. Like, those guys… they are… they give us a price every month or something and they say 'You can buy that many' and it's yes or no. And if we say no, then they never talk to us again."

The RAMpocalypse or RAMflation or RAMtastrophe is having a pretty disasterous effect on prices for gaming hardware across the board. Memory components are getting gobbled up by generative AI companies months in advance, all to power their very needy data centres. And to somewhat satiate the always hungry beast, lots of RAM-producing companies are reserving their supply for AI companies that order in massive amounts - leaving ordinary consumers in the dust.

Anyone on the market for a new gaming PC has likely watched prices go up in real time. All three console makers have upped their prices in the last 12 months, too. Xbox Series X|S consoles went up by almost $200, all PS5 machines saw a big hike, and even the Nintendo Switch 2 is facing slightly higher costs come September - and the console's barely been out for a year.

Valve's been pretty transparent about its RAM-related problems in the lead-up to Steam Machine's launch, however. Engineers previously implied the hardware faced a similar price bump to that of the Steam Deck, meaning the company was probably thinking it could sell the Steam Machine for $300 less than it currently is. Months before launch, Valve practically pleaded for RAM supplies.

$1,049 Steam Machine is still a "good value," Valve engineer says, even though it was supposed to be $789 like the Steam Deck

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