Opinion: Steam Console a worry for Sony, Microsoft, Nintendo

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3 mins read

The rumours that Valve is looking to create a home console are looking more and more possible, if not likely. And Nintendo, Microsoft and Sony should be worried.

While many were able to dismiss Apple’s role as a gaming hardware manufactured based on the company’s relative inexperience with games, a corporate culture that isn’t friendly to gaming, and hardware that is arguably not appropriate for gaming (lacking physical buttons as it does), Valve knows gaming as well as anyone. Its Steam platform was the first (and still the most successful) at unifying the PC gaming industry into a centralised platform, and few would doubt the potential of a “Steam Console.”

One has to ask then; is there room for four different consoles in the set top box market? I would suggest not; especially when three of them (Sony, Microsoft and Valve) would be competing against very similar game libraries to one another. Differentiation is becoming more challenging, which is why Sony and Microsoft have worked so hard to add it non-gaming features to their hardwares, and add mobile compatibility to keep people invested in their brands.

Already the hardware market has been commoditised; there’s no room for margin with hardware any longer, and another player in the space is only going to squeeze margin further.

Valve would of course face problems of its own were it to release a Steam Console. It would become a first party developer, but one that is not nearly prolific enough to maintain its own console with exclusives. While Steam itself enjoys a large number of PC-exclusive games, those don’t necessarily transfer over as the kinds of games console gamers like.

And finally, Steam itself doesn’t have those content partnerships that Sony and Microsoft have worked so hard to develop. The company would be the upstart in the market in every sense of the word, but to dismiss it would be foolish.

This would be the first time there are four major hardware manufacturers in the games industry, and taking into account some erosion from Apple’s iPhone and iPad, it’s hard to see all four manufacturers being long-term sustainable. So Sony, Microsoft and Nintendo should indeed be worried by the potential of a “Steam Box.”

This is the bio under which all legacy DigitallyDownloaded.net articles are published (as in the 12,000-odd, before we moved to the new Website and platform). This is not a member of the DDNet Team. Please see the article's text for byline attribution.

  •  "This would be the first time there are four major hardware manufacturers in the games industry"
    FYI – Back in 2000, there were 4 players in the market, Sega (Dreamcast), Nintendo (gamecube), Sony (playstation) and Microsoft (Xbox)

  •  "This would be the first time there are four major hardware manufacturers in the games industry"
    FYI – Back in 2000, there were 4 players in the market, Sega (Dreamcast), Nintendo (gamecube), Sony (playstation) and Microsoft (Xbox)

  • As much as I'd like to have one, I'm thinking that a Steam set top box might not be anything more than a niche item. A lot of folks are into the whole 'tuning' aspect of PC gaming and that probably wouldn't be a possibility here.

  • As much as I'd like to have one, I'm thinking that a Steam set top box might not be anything more than a niche item. A lot of folks are into the whole 'tuning' aspect of PC gaming and that probably wouldn't be a possibility here.

  • Interesting article! Who knows what we will see in the future, let alone the next few years?

    @Shrogg – Still, SEGA never did too well. That's why you don't find them making consoles no more.

  • Interesting article! Who knows what we will see in the future, let alone the next few years?

    @Shrogg – Still, SEGA never did too well. That's why you don't find them making consoles no more.

  • I think while the idea's interesting, it'll be a challenge.  Does it cut into their computer-based service?  Do people want another console?  I am pretty sure my wife would put her foot down at a 4th console investment. 😛

  • I think while the idea's interesting, it'll be a challenge.  Does it cut into their computer-based service?  Do people want another console?  I am pretty sure my wife would put her foot down at a 4th console investment. 😛

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    Opinion: Steam Console a worry for Sony, Microsoft, Nintendo

    /////
    3 mins read

    The rumours that Valve is looking to create a home console are looking more and more possible, if not likely. And Nintendo, Microsoft and Sony should be worried.

    While many were able to dismiss Apple’s role as a gaming hardware manufactured based on the company’s relative inexperience with games, a corporate culture that isn’t friendly to gaming, and hardware that is arguably not appropriate for gaming (lacking physical buttons as it does), Valve knows gaming as well as anyone. Its Steam platform was the first (and still the most successful) at unifying the PC gaming industry into a centralised platform, and few would doubt the potential of a “Steam Console.”

    One has to ask then; is there room for four different consoles in the set top box market? I would suggest not; especially when three of them (Sony, Microsoft and Valve) would be competing against very similar game libraries to one another. Differentiation is becoming more challenging, which is why Sony and Microsoft have worked so hard to add it non-gaming features to their hardwares, and add mobile compatibility to keep people invested in their brands.

    Already the hardware market has been commoditised; there’s no room for margin with hardware any longer, and another player in the space is only going to squeeze margin further.

    Valve would of course face problems of its own were it to release a Steam Console. It would become a first party developer, but one that is not nearly prolific enough to maintain its own console with exclusives. While Steam itself enjoys a large number of PC-exclusive games, those don’t necessarily transfer over as the kinds of games console gamers like.

    And finally, Steam itself doesn’t have those content partnerships that Sony and Microsoft have worked so hard to develop. The company would be the upstart in the market in every sense of the word, but to dismiss it would be foolish.

    This would be the first time there are four major hardware manufacturers in the games industry, and taking into account some erosion from Apple’s iPhone and iPad, it’s hard to see all four manufacturers being long-term sustainable. So Sony, Microsoft and Nintendo should indeed be worried by the potential of a “Steam Box.”

    This is the bio under which all legacy DigitallyDownloaded.net articles are published (as in the 12,000-odd, before we moved to the new Website and platform). This is not a member of the DDNet Team. Please see the article's text for byline attribution.

    Previous Story

    Awesomenauts to storm XBLA and PSN

    Next Story

    Review: Worms: Ultimate Mayhem (PS3)

    Latest Articles

    >