The Steam Machine is Already Triggering XBOX 360 Trauma Before Launch

4 hours ago 2

Published Jul 3, 2026, 10:24 AM EDT

Jake Valentine is a Contributor at DualShockers with more than two decades of experience covering the video game industry. Since 2004, he has written about games across news, reviews, guides, lists, interviews, and event coverage, with experience covering major shows, preview events, breaking news, and one-on-one developer interviews.

Before joining DualShockers, Jake contributed to Outrun Gaming, GameRant, and The Game Fanatics. He has also worked in editorial, brand management, and operations roles, giving him a broad perspective on both games coverage and digital media. He holds a Bachelor’s Degree in Electronic Media and Broadcasting.

Valve's Steam Machine already had enough issues in the wake of its pricing announcement. Now, as people are getting their hands on them, more problems are starting to arise.

As pointed out on the Steam Machine subreddit, one user saw theirs receive an XBOX 360-style Red Ring of Death. In this case, though, I guess it would be a Red Line of Death.

Here's a quick recap of what happened from u/me_hill:

Got five minutes of No Man's Sky in, then I installed the update the machine had available and it bricked itself. If you're still in the queue, look on the bright side: they're presumably going to iron this crap out.

The user later clarifies that the error light code is due to GPU failure. Until then, it's, in their words, "a very expensive paperweight that glows a little."

Fun fact: my XBOX 360 suffered a Red Ring of Death that made me miss the entirety of the Halo 3 beta. Yeah, I'm still a little salty over it.

Valve has a helpful page set up that explains what every LED pattern means on a Steam Machine. The red, slowly brightening light bar does indeed indicate that the Steam Machine is suffering through a GPU failure.

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The Steam Machine Is Already Facing Stout Criticism

Even if Valve's much-anticipated Steam Machine was working flawlessly, there are still plenty of critics who question its existence.

In theory, a living room friendly gaming PC is an excellent idea, especially since comparable pieces of hardware, notably gaming consoles such as a PS5 or XBOX Series X|S, are typically cheaper than buying a PC. They're also far more accessible to use, and the Steam Machine will help Valve tap into a new market of consumers.

The problem, though, is that when you're releasing a piece of hardware for a $1,000 minimum (without a controller, mind you), you're arguably pricing out your target audience. Sure, game consoles are also becoming more expensive, but a Nintendo Switch 2, PS5, or XBOX are all cheaper than the Steam Machine.

Shuhei Yoshida, former President of Sony Interactive Entertainment, recently gave his thoughts on the Steam Machine, and he didn't seem impressed.

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Gamers Are Pushing Back Harder Against Anti-Consumer Practices and Price Points

Gamers Are Pushing Back Harder Against Anti-Consumer Practices and Price Points

It's been a tough few years for the video game industry. Layoffs have dominated the news cycle after the COVID-19 bubble burst, and affordability is at the forefront of everyone's mind due to various economic conditions.

Every day, it seems like companies are trying to push their luck, seeing what they can get away with in order to increase their bottom line. Nintendo released Mario Kart World, among other games, for $80 MSRP; XBOX tried to follow suit with The Outer Worlds 2 before changing course. Grand Theft Auto 6 will run $80, but you'll be missing content available in the $100 version of the game.

Yoshida also said in the past that $80 is a steal for "top-quality" games, although there hasn't been much traction from Sony when it comes to charging $80 for their first-party titles quite yet. They did, however, announce plans to stop porting their games to PC, as well as ending production of physical PlayStation games starting in 2028.

It seems like anti-consumer news is happening all too frequently in the industry today, and gamers have had enough. If we're going to be paying a premium price to enjoy our hobby, the least we should expect is to be able to not only own our games, but also make sure the hardware we're playing on them works.

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Valve

Date Founded August 24, 1996

Headquarters Bellevue, Washington, United States

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