PC Gaming

I think your last point also applies to Valve. Limiting the number of models simplifies things for Valve; effectively they only have two models to support right now between the LCD and OLED models. From a software perspective I assume they’re extremely similar except at a very low level, mainly with the display panel difference. From a hardware perspective that’s only 2 main SKU families (looks like maybe 6 total with 3 of each?) and still probably a lot of parts overlap except with the panel and I’d assume two variants of the mainboard to accommodate different connections for each panel. Even making the OLED variants complicated things I’m sure, but it should be manageable.

We learned within the past year that Valve is still an astonishingly small company compared to how much revenue it has; I think they were only around 450 employees. That’s pretty doable with software, but dealing with hardware starts to force that level up and would start cutting into the incredible profitability per employee that they’re accustomed to.

Of course they’ve made plays in the hardware space before, but I don’t think anything’s been near the volume the Steam Deck has. Even assuming that they’re outsourcing the manufacturing, and maybe fulfillment, and maybe even warranty repairs, that still means they need employees to manage and support those programs. They need employees trained to support those products. They need to store spare parts and plan to have enough to legal requirements beyond the final sale date. They need to test software updates against every hardware variant prior to release for as long as the product is supported. Keeping the number of SKUs small makes the rest of that manageable and hopefully keeps profitability high and quality of service good. If they start adding too many SKUs then they need more employees, giving lower profitability and they start cutting quality and service until we end up with the bad products and support we see from so many big PC companies.

It seems like they’re working towards opening Steam OS up where other companies can make their own devices. Let other companies handle the incremental updates and making the software work with their hardware. Let Valve keep focusing on just making a few things but making them really good.