What component shortages drove up Steam Machine prices?

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Memory chip prices and shortages drove up Steam Machine prices
Valve said the Steam Machine’s entry-level price of US$1,049 was driven by the exploding cost of memory chips, which are also used in large-scale AI data centres. Valve also pointed to high demand for those chips that created a shortage, limiting how many units it could produce for launch.
Memory chip costs rose more than threefold over the past year
Valve linked the console’s pricing to “exploding” memory chip costs, stating that memory chip prices have more than tripled over the last year or so. This increase fed directly into the manufacturing costs for the entry-level Steam Machine.
Valve tied pricing to component costs secured over the past six months
Valve explained that the prices it shared reflect the state of manufacturing and, more precisely, the prices of components it had secured over the past 6 months. The company’s statement placed the memory chip pricing pressure within that procurement window.
Chip shortages reduced the number of units available for launch
Valve said high demand for the chips created a shortage, which impacted the number of units it could produce for launch. As a result, the launch supply was constrained even as the product moved toward shipping on June 29.
The AI race indirectly raised costs through demand for memory chips
Valve connected the chip pressure to the global AI data centre boom by noting that memory chips are also used in those facilities. In the same context, it described the global AI race as inflating chip prices, which then pushed the Steam Machine’s price above US$1,000.

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What component shortages drove up Steam Machine prices?

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