Valve has confirmed Australian pricing for its new Steam Machine, with the compact gaming PC starting at $1,609, well above traditional console pricing.

The cube-shaped device, which runs SteamOS and is designed to bring PC gaming into the living room, will be sold locally in four configurations. The 512GB model will cost $1,609 without a controller, while the same version bundled with the Steam Controller will cost $1,728.

A 2TB model will be priced at $2,109, rising to $2,228 when bundled with Valve’s controller.

Valve said the pricing reflects rising component costs, particularly around memory and solid-state storage, which have been affected by global supply shortages and growing demand from the artificial intelligence sector.

“The overall effect is that our original goal for the price of Steam Machine is no longer viable,” Valve said.

The company has also warned that supply will be constrained at launch. Rather than selling the Steam Machine on a first-come, first-served basis, Valve will use a randomised reservation system to make access fairer and limit scalpers.

Australian customers can register interest before reservations are drawn, with the first orders expected to begin from June 29.

The Steam Machine is being positioned as a console-style alternative to a gaming PC, with Valve claiming it delivers around six times the performance of the Steam Deck handheld. It targets 4K gaming at 60 frames per second using AMD’s FSR upscaling technology.

However, the high local price could make it a difficult sell against mainstream consoles, especially with the controller sold separately on some models.

Valve has defended its decision not to subsidise the hardware, arguing that open PC ecosystems are healthier for customers than traditional console models that rely on locked-in software and services.

The launch comes as other gaming hardware makers also raise prices in response to rising production and logistics costs, with Sony, Microsoft and Nintendo all moving to higher console pricing in key markets.