Sure. Maybe? The Deck isn’t that expensive, and despite being relatively limited runs it definitely has some benefits from scale. For one it’s a custom APU, so you have to assume there’s a specific deal with AMD.
Valve is certainly a first party that benefits from software sales primarily, so it makes sense for them to go to some lengths to invest in bringing people over, but I’m not sure that they are actively subsidizing the Deck, the price seems pretty reasonable. I’m sure they don’t make a ton of money from it, though, so they definitely get to thin those margins up a LOT compared with the pure hardware manufacturers, let alone with the tiny companies making handhelds one at a time.
Fair enough, Gabe has even said they don’t have a tie-in ratio, just that pricing was both painful and a test. Thin margins is the conclusion I came to as well, but knowing they expected to expand game sales with it, too.
Sure. Maybe? The Deck isn’t that expensive, and despite being relatively limited runs it definitely has some benefits from scale. For one it’s a custom APU, so you have to assume there’s a specific deal with AMD.
Valve is certainly a first party that benefits from software sales primarily, so it makes sense for them to go to some lengths to invest in bringing people over, but I’m not sure that they are actively subsidizing the Deck, the price seems pretty reasonable. I’m sure they don’t make a ton of money from it, though, so they definitely get to thin those margins up a LOT compared with the pure hardware manufacturers, let alone with the tiny companies making handhelds one at a time.
Fair enough, Gabe has even said they don’t have a tie-in ratio, just that pricing was both painful and a test. Thin margins is the conclusion I came to as well, but knowing they expected to expand game sales with it, too.