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Technology@lemmy.world•Valve says it isn't subsidizing the Steam Machine's $1050 price because of its "religious" refusal to "build a more closed system"English

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No one is buying this to not use it for gaming under a subsidized price because there are much better options for that purpose.
If it cost a few hundred dollars less per unit than comparable small form factor PCs, then small businesses probably would. When you only need something that works and don’t care about support contracts or having a standardized hardware fleet, anything cheap will do the job.
I’m not sure how you plan on doing that with the “physical edition” being a digital download code in a box. And, that’s probably the point—to drive more sales by eliminating the used game market.