Alienware's general manager spoke to another site about his thoughts on Steam Machines and how he feels theirs will sell. The news comes from Wall Street Journal although unless you subscribe to them you won't be able to read the full article.
Frank Azor the general manager at Alienware stated this:
It looks like Alienware are being realistic, Steam Machines will be a gradual build up and not an instant success in my eyes. I imagine other companies doing Steam Machines feel exactly the same about them.
It's a financial risk for a company to put out Steam Machines that much is obvious as if it flops they have a bunch of customized PC's they have to get rid of somehow. With Steam's massive user base it could sell better than a lot of companies think it will if Valve can push it enough, this is most likely why Alienware and other companies got involved since it has massive potential.
We have seen massive influx of Linux games in the past year and it looks to continue all the way through this year. The amount of articles we put up here is proof of that.
I will be buying a Steam Machine + Steam Controller myself to hook up to my living room TV even though I already have a pretty damn good PC since it opens up game streaming too. I do wonder how many other people will be looking to do the same.
What will you be doing about SteamOS and Steam Machines? Will you buy one to show your support or roll your own? Article taken from GamingOnLinux.com.
Frank Azor the general manager at Alienware stated this:
QuoteThis will absolutely be the least profitable system we ever sell.
It looks like Alienware are being realistic, Steam Machines will be a gradual build up and not an instant success in my eyes. I imagine other companies doing Steam Machines feel exactly the same about them.
It's a financial risk for a company to put out Steam Machines that much is obvious as if it flops they have a bunch of customized PC's they have to get rid of somehow. With Steam's massive user base it could sell better than a lot of companies think it will if Valve can push it enough, this is most likely why Alienware and other companies got involved since it has massive potential.
We have seen massive influx of Linux games in the past year and it looks to continue all the way through this year. The amount of articles we put up here is proof of that.
I will be buying a Steam Machine + Steam Controller myself to hook up to my living room TV even though I already have a pretty damn good PC since it opens up game streaming too. I do wonder how many other people will be looking to do the same.
What will you be doing about SteamOS and Steam Machines? Will you buy one to show your support or roll your own? Article taken from GamingOnLinux.com.
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Sounds like this might be Dell's first and last Steam Machine. Ah well, that's what you get for being an early adopter.
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I think I will use my current PC and dual boot Steam OS
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"This will absolutely be the least profitable system we ever sell."
Because Alienware can't sell it for 2x the price as they would with the rest of their computers.
Because Alienware can't sell it for 2x the price as they would with the rest of their computers.
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yeah probably the statement is about the price they sell.. not that how many units they sell or how popular it is or gonna be.
its probably the competition that the build parts cost pretty much for such a small factor PC and the price they can ask for it isnt enough for them.
its probably the competition that the build parts cost pretty much for such a small factor PC and the price they can ask for it isnt enough for them.
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Well I would probably have bought one if I would not have had two computers that are less then a year old. One running LM13 I already have connected to my TV with Steam big picture mode on + XMBC for some media though. I hope Valve will add some media features before official release.
When it comes to the fact about Steam machine vs PS4/Xbox One I don´t think they can compete in price for performance, but considering the price for games on console vs price on PC one may save some money in the long run. And I would not be surprised if Valve would include some of their own games with Steam machines.
When it comes to the fact about Steam machine vs PS4/Xbox One I don´t think they can compete in price for performance, but considering the price for games on console vs price on PC one may save some money in the long run. And I would not be surprised if Valve would include some of their own games with Steam machines.
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Sounds like this might be Dell's first and last Steam Machine. Ah well, that's what you get for being an early adopter.
i wouldn't say so. least profitable is probably meant with the fact they won't earn as much per unit as they usually do due to the fact they stated it will be sold for "competitive price with current gen", which is around $500.
2nd factor is that any machine is more expensive in early days than in later. for one you need to cover R&D costs, your Q&A warrants more work and you can squeeze extra part discounts with every next larger order, beside the fact that hw it self gets cheaper.
all hardware is conditioned to same rules. but, lower earning can be battled with quantity, which is probably what alienware is aiming for with low price
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Cheeseness May 20, 2014
yeah probably the statement is about the price they sell.. not that how many units they sell or how popular it is or gonna be.I think you've hit the nail on the head there. This is an acknowledgement from Alienware that the type of premium they put on their more traditional range of machines won't fly in the Steam Machine marketplace.
There's still value in it for them though - having brand presence early in the Steam Machine ecosystem should firmly establish them there, and I expect that they'll be recommending Alienware branded peripherals to go with it (which they probably have a hefty markup on).
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Steam Machines IMO are going to be very price sensitive. Since most Linux Steam games could be served with a low end i3 with intel graphics & 2 GB Ram, in other words a sub $300 machine, Alienware with their premium hardware focus & traditionally less cost conscious customer could have a tough go of it.
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When it comes to the fact about Steam machine vs PS4/Xbox One I don´t think they can compete in price for performance
lol, you have grand flaw in your comment. you shouldn't look today, look at the future. steam machines are yearly releases with years current hardware, ps4 and xbone are 7-10 with the same.
it is not even important if first incarnation beats ps4/xbone, all it needs is to start traction of adopters. even ps4 or xbone won't sell 50million in this year only. it is a process where early adopters start traction which is later followed by other gamers
but, here is the catch... either prices of ps4/xbone will drop to $100 in next 2 years, or they simply won't be competitive since their hw will be obsolete anyway. especially since this is 1st console gen that started with more or less mediocre hw unlike previous.
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I see no point in buying a Steam Machine when one has a regular PC with Linux already (if you want to attach it to the living room - just get some long cables for the video and wireless controllers). The new controller from Valve however is something I'll consider, if they indeed will make drivers open and push them into the upstream kernel. "Streaming" is useless for those who don't have Windows installed elsewhere, so it's not something that interests me.
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I am probably going to buy this - but not to "show my support" or whatever, but because I simply want it. I'd like to have a nice gaming device for my TV - not as PC, I do not care that much about gaming on the PC.
That will go with SteamOS + hopefully more and more games over the years. It is incredible what Valve achieved within the last year until date, I could play lots of games on my linux machines since I do not have PS, xbox nor windows anywhere at hand
That will go with SteamOS + hopefully more and more games over the years. It is incredible what Valve achieved within the last year until date, I could play lots of games on my linux machines since I do not have PS, xbox nor windows anywhere at hand
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This is one of the prettiest looking steam boxes, but I think it's going to come at a premium
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I see no point in buying a Steam Machine when one has a regular PC already (if you want to attach it to the living room - just get some long cables for the video and wireless controllers). The new controller from Valve however is something I'll consider, if they indeed will make drivers open and push them into the upstream kernel. "Streaming" is useless for those who don't have Windows installed elsewhere, so it's not something that interests me.
It seems they are marketing this to Windows gamers who either don't know how to do anything on/with a computer but play games, or for people who want some kind of console-like machine for the living room but don't want to run cables through their entire home. The goal here is to have a pre-built, simple solution that gives Valve complete control over their platform, and gives PC gamers with (I believe) little technical skills other options. And since it's not even released yet, who knows what else they will be bringing to the table. Streaming may be useless for Linux gamers, but they are not targeting Linux gamers, imo.
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Frank Azor has already commented this:
"Alienware is very optimistic about PC gaming's future and its opportunity to extend to the TV. We have been partners with Valve since the inception of the Steam Machine over 2 years ago. Our decision to invest in developing the purpose-built Alienware Steam Machine, pairing it with incredible performance and pricing it as aggressively as possible has everything to do with how much we believe in this vision and want to see it materialize."
so by saying "least profitable" he pointed out indeed how they will have very little profit per piece due to agressive pricing. just like others stated this has little to do with them thinking they will sell badly (and even if it does, they invest more into the idea in a longterm perspective)
"Alienware is very optimistic about PC gaming's future and its opportunity to extend to the TV. We have been partners with Valve since the inception of the Steam Machine over 2 years ago. Our decision to invest in developing the purpose-built Alienware Steam Machine, pairing it with incredible performance and pricing it as aggressively as possible has everything to do with how much we believe in this vision and want to see it materialize."
so by saying "least profitable" he pointed out indeed how they will have very little profit per piece due to agressive pricing. just like others stated this has little to do with them thinking they will sell badly (and even if it does, they invest more into the idea in a longterm perspective)
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It seems they are marketing this to Windows gamers who either don't know how to do anything on/with a computer but play games, or for people who want some kind of console-like machine for the living room but don't want to run cables through their entire home. The goal here is to have a pre-built, simple solution that gives Valve complete control over their platform, and gives PC gamers with (I believe) little technical skills other options. And since it's not even released yet, who knows what else they will be bringing to the table. Streaming may be useless for Linux gamers, but they are not targeting Linux gamers, imo.
Sure, they want to match the "out of the box" experience of other consoles obviously. But I think even for those not technically knowledgeable getting someone to help with attaching the PC to the living room with a cable is going to be cheaper than getting a whole new Steam Machine. Especially if you consider that they'll cost more than average consoles. Price might be a weak point for them to some degree. So I expect that they target more those who don't do heavy gaming on a PC and want a standalone console for it. Anyway, I hope they'll sell well and I wish them success (despite the fact that I'm not using Steam and systems with DRM), because it will help Linux gaming in general in a big way.
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I'm making my own right now, originally I was going to wait until release date and buy either an Alienware, iBuyPower or CyberpowerPC, but analysing it more carefully, I changed my mind. I don't like the idea that Alienware's one won't be customisable and it might be the same case for many of the others in the £400 price range. I think also, although the retail prices of some of the lower models are reasonable, they will be much more expensive in the UK. So if we're looking at £400, I can build one with higher specs that will be customisable for £300-400 and just buy the steam controller separately when it comes out, use Xbox controllers until then. Here are some of the parts I bought in case anyone is interested in doing the same:
CPU: AMD FX 6300 (£76) - Best value for money CPU out there, easily overclockable to 4.4ghz and has 6 cores
Graphics: KFA2 Nvidia Geforce GTX750ti OC (£113) - thanks to Nvidia's new Maxwell architecture, this is a half-sized card that will fit in a slim case with only 60w power consumption. Plays all current games maxed out at 30-60fps.
Case: Aerocool QS-101 (£50) - comes with 400w PSU, not the best PSU but power consumption should be around 300w so no problem. If you don't want to take risks, best to buy a reliable PSU separately.
RAM: You can get 8GB for £50 (any more than that is overkill for gaming, 16GB may give you 1-2 FPS more so hardly worth it)
Motherboard: A Micro ATX or Mini ITX for £30-40
HDD: I already have one, so didn't buy one, but you can get 500gb for £30
Cooling: Use the AMD stock cooler unless over-clocking. I'm not over-clocking.
So there, you can build a very good steam machine for £300-400 that's more powerful than the PS4 and XBone (if you're in the US, it's probably even cheaper). The problem with lots of the "budget steam machine" guides that I've seen online is that they put the money in the wrong places (same with the prebuilt ones). Intel is a waste of money at this price range, you can get the same performance out of this AMD as you can with an i5 that costs £40 more. You also shouldn't need a DVD drive for a Steam Machine, the whole idea of Steam is that it's download-only. Then there's choosing the right graphics card, and the gtx 750 ti is the best value for money out there, a lot of guides show ATI cards and a lot of prebuilt ones sell them with ATIs (which from past experience, is a terrible choice on Linux - though this might have changed now, not sure). The last thing is RAM and HDDs, with even 8GB only giving slight improvements over 4GB performance-wise for games and SSDs not really being worth the price currently.
I've been researching all this for the last couple of weeks, so I hope this is helpful to anyone looking to do the same.
CPU: AMD FX 6300 (£76) - Best value for money CPU out there, easily overclockable to 4.4ghz and has 6 cores
Graphics: KFA2 Nvidia Geforce GTX750ti OC (£113) - thanks to Nvidia's new Maxwell architecture, this is a half-sized card that will fit in a slim case with only 60w power consumption. Plays all current games maxed out at 30-60fps.
Case: Aerocool QS-101 (£50) - comes with 400w PSU, not the best PSU but power consumption should be around 300w so no problem. If you don't want to take risks, best to buy a reliable PSU separately.
RAM: You can get 8GB for £50 (any more than that is overkill for gaming, 16GB may give you 1-2 FPS more so hardly worth it)
Motherboard: A Micro ATX or Mini ITX for £30-40
HDD: I already have one, so didn't buy one, but you can get 500gb for £30
Cooling: Use the AMD stock cooler unless over-clocking. I'm not over-clocking.
So there, you can build a very good steam machine for £300-400 that's more powerful than the PS4 and XBone (if you're in the US, it's probably even cheaper). The problem with lots of the "budget steam machine" guides that I've seen online is that they put the money in the wrong places (same with the prebuilt ones). Intel is a waste of money at this price range, you can get the same performance out of this AMD as you can with an i5 that costs £40 more. You also shouldn't need a DVD drive for a Steam Machine, the whole idea of Steam is that it's download-only. Then there's choosing the right graphics card, and the gtx 750 ti is the best value for money out there, a lot of guides show ATI cards and a lot of prebuilt ones sell them with ATIs (which from past experience, is a terrible choice on Linux - though this might have changed now, not sure). The last thing is RAM and HDDs, with even 8GB only giving slight improvements over 4GB performance-wise for games and SSDs not really being worth the price currently.
I've been researching all this for the last couple of weeks, so I hope this is helpful to anyone looking to do the same.
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pretty much what Mike said!
i would go with FX8320 though..which is just £15 more . so you can get the more tasks on the same time and its more future proof since the new generation of consoles are the same 8 core as well.
though 6300 is still super good.
buying a gaming pc nowadays isnt that expensive..most expensive part is the GPU. CPU isnt that important for most of the games..
i always laugh when some Gaming Laptops coming with i7 4770M or similar and then have some random crappy nvidia 640M ... why the fcuk you put that expensive CPU to your gaming machine...
i would go with FX8320 though..which is just £15 more . so you can get the more tasks on the same time and its more future proof since the new generation of consoles are the same 8 core as well.
though 6300 is still super good.
buying a gaming pc nowadays isnt that expensive..most expensive part is the GPU. CPU isnt that important for most of the games..
i always laugh when some Gaming Laptops coming with i7 4770M or similar and then have some random crappy nvidia 640M ... why the fcuk you put that expensive CPU to your gaming machine...
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CPU is going to be more important than it is now. It's a wrong trend that it's underused and things are slowly changing (various multithreading usage is growing in gaming too).
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CPU is going to be more important than it is now. It's a wrong trend that it's underused and things are slowly changing (various multithreading usage is growing in gaming too).
it is... specialy the latest opengl driver overhead removal stuff...
but this will take some time and since the current consoles are using AMD CPU solutions there is no big need for anything better..because lets face it.. many of the games are ports for PC, with slightly better textures or something similar...
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Least profitable in comparison to what????
A multi billion dollar company views 10 million dollars as pocket change.
A homeless man views $1,000 as "a lot of money".
If they sell 5,000 Alienware Laptops @ $2,000 each they make 10 Million dollars, or 1,000 Steam Machines at $1,000 each they make 1 Million dollars.
If they don't wanna be king of the party, someone else will be king of SteamOS and then they'll be kicking themselves later when they see how much money they make on Steam Consoles.
A multi billion dollar company views 10 million dollars as pocket change.
A homeless man views $1,000 as "a lot of money".
If they sell 5,000 Alienware Laptops @ $2,000 each they make 10 Million dollars, or 1,000 Steam Machines at $1,000 each they make 1 Million dollars.
If they don't wanna be king of the party, someone else will be king of SteamOS and then they'll be kicking themselves later when they see how much money they make on Steam Consoles.
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