Different value props. The target audience for this already has an extensive Steam catalogue. To buy a PS5 Pro is going to require re-buying all of your games for it.
Also, you can build a decent PC for $1049, but getting it into a decent form/noise factor is going to ratchet that price up. Add in the proprietary CEC stuff that Valve has done for it and it's not as terrible as it seems.
Console stores also have sales. Often with pretty huge discounts. I just bought a bunch of games on Xbox in the 1-5 dollar range. I see similar sales on PS5 all the time.
Honestly, these days, Steam, PS and Xbox game sales prices are pretty much in the same level now. Ten years ago it was very different. Recently I was thinking whether to buy Resident Evil 4 on Steam or on PS (had the same price 9,99€). Got it on Steam in the end. Though, Steam still wins on regional pricing as they support more local currencies.
Only the Nintendo store have games priced usually a bit higher.
A slow gaming PC that is small and can turn on my TV is still... a slow gaming PC. And one of the main PC benefits, upgradeability is non-existent for the parts that matter (e.g. GPU, VRAM, etc).
I'm still gaming on a 980. I have never been chasing pixel perfection or the latest and greatest.
I would say I am the exception, but hardware survey says otherwise. There are a lot of people for whom the Steam Machine would be at worst a sidegrade.
I'm actually firmly in the console (XSX in my case) bracket for my gaming. I want it to just work without any fuss, and for way under $1000.
The main benefits to the PC gaming space (upgradability of components, higher than console performance, compatible with a diverse ecosystem) are all worse on the Steam Machine than basically any other gaming PC. And running Windows games on Linux is definitely more fuss for many/most games.
The Steam Machine is extremely small and supports HDMI-CEC. Other than that, it doesn't have a lot going for it, and it is priced at quite the premium. That is a questionable value prop for many.
> To buy a PS5 Pro is going to require re-buying all of your games for it
Why would I re-buy all the games I own?! The vast majority of people one-and-done games and movies. There are a handful they go back to, and that's it.
CHILDREN replay games cycling through them ad-infimum because their entire concept of time is like 3x less than we've been waiting for the next GTA.
And they don't have money! Adults are the majority of the market now.
Any other behavior from adults, who are seriously time constrained, is niche. And that's fine if someone wants to spend their adult time on earth replaying games, but let's be honest. It's niche.
* Not all PS4 games can run on PS5. Granted, it's only a few edge cases. But you still need to pay the PS4>PS5 upgrade if you want to avoid bottlenecks.
* PS3 games and the like require a 150+$ yearly subscription, and it's streaming for many of them. No thanks.
* No PS2/PSP/Vita compatibility, heck no emulation at all.
Exactly. That is just more about the ecosystem you are already in. I've been buying most games digitally since Xbox 360, and they all still run on my XSX. The same would be true if I had been in the Playstation ecosystem.
Also, you can build a decent PC for $1049, but getting it into a decent form/noise factor is going to ratchet that price up. Add in the proprietary CEC stuff that Valve has done for it and it's not as terrible as it seems.