Valve Warns of Worsening Memory Shortages and Rising Costs

WHO:

GamesIndustry.biz - Valve, a gaming giant and developer of the Steam Machine.

Eurogamer.net - Valve engineers Pierre-Loup Griffais and Yazan Aldehayyat.

WHAT:

GamesIndustry.biz - Valve admitted that sourcing memory and storage supply for the Steam Machine is "still getting worse."

Eurogamer.net - The minimum price for the Steam Machine is £879 ($1,049), which Valve acknowledged is above their original target.

Eurogamer.net - Microsoft announced a price increase for the entire Xbox Series X/S line-up, effective 1st August.

Eurogamer.net - Microsoft expects component prices to double again by the autumn of 2027.

WHERE:

GamesIndustry.biz - The Steam Machine is available in the UK and the US.

WHEN:

Eurogamer.net - Microsoft’s price increase for Xbox consoles is effective 1st August.

Eurogamer.net - Nintendo announced a price hike for the Switch 2 to take effect 1st September.

WHY:

GamesIndustry.biz - The memory crisis is attributed to the AI industry's demand for data centers and memory.

Eurogamer.net - Current component prices are higher than when Valve shipped the initial wave of Steam Machines.

HOW:

GamesIndustry.biz - Valve engineers stated they are "basically building everything we can get our hands on" due to memory capacity limitations.

Eurogamer.net - Valve's observations indicate that retail shelf availability is lagging behind bulk supply by at least three to six months.

(UPDATED July 21, 2026 05:59 UTC)

Valve has acknowledged that sourcing memory and storage for the Steam Machine is becoming increasingly difficult, with the minimum price now set at £879, or $1,049, which is higher than their original target. Meanwhile, Microsoft is set to raise prices for the Xbox Series X/S line-up effective August 1, and Nintendo will follow suit with a price hike for the Switch 2 starting September 1. The memory crisis is largely driven by the demand from the AI industry, leading Valve engineers to state they are "basically building everything we can get our hands on" as retail availability lags behind supply by three to six months.