Tim Sweeney Criticizes Valve Over Steam Deck Price Increase, Says Gabe Newell Should Absorb Costs
Epic Games CEO Tim Sweeney has weighed in on Valve’s latest Steam Deck price increase, and his response is exactly as sharp as many would expect. Known for his long-running criticism of Valve and its position in the PC gaming market, Sweeney argued that the company could have handled rising hardware costs without passing them on to customers.
The controversy began after Valve raised prices on its Steam Deck OLED models. The 1TB Steam Deck OLED is now listed at $949, while the 512GB version has climbed to $789. That represents a major jump of $300 and $240, respectively, making the handheld gaming PC noticeably more expensive than before.
Valve has pointed to higher component costs and supply chain pressure as reasons for the price hike. Sweeney, however, suggested that Valve’s massive Steam business should be more than capable of absorbing those additional costs. In his view, customer spending across Steam already helps fund Valve’s hardware ecosystem, meaning buyers should not have to shoulder the full burden.
Sweeney also responded to speculation surrounding Valve’s upcoming Steam Machine, a compact gaming PC that some believe could arrive with a price tag around $1,500. Although Valve has not officially confirmed pricing or a launch date, the possibility of another expensive piece of gaming hardware has already sparked debate among PC gamers.
In a sarcastic post, Sweeney took aim at Valve co-founder Gabe Newell, joking that the “supply chain for megayachts” may also have been disrupted. The comment was a pointed reference to Newell’s immense wealth and reputation for spending time aboard luxury vessels.
The Steam Deck price increase has not gone over well with many gamers. While handheld gaming PCs from brands such as Lenovo, MSI, and Asus have also become more expensive, some players feel Valve’s latest pricing makes the Steam Deck less competitive than it once was. The price jump has also renewed concerns that the Steam Machine could arrive at a premium far beyond what many players are willing to pay.
Still, Sweeney’s criticism did not receive universal support. Many users pushed back, accusing Epic Games of having its own controversial business decisions, including past layoffs and aggressive store exclusivity strategies. Others argued that Steam remains popular because of its launcher, community features, library tools, and long-standing trust among PC gamers.
For many observers, Sweeney’s comments are less about the Steam Deck itself and more about his broader dispute with Valve’s dominance in digital PC game distribution. He has repeatedly argued that Steam holds too much power over developers and customers, particularly due to its marketplace fees and massive user base.
The debate highlights a bigger issue in the gaming industry: as hardware costs rise, companies must decide whether to protect profit margins or keep prices stable for loyal customers. Valve’s decision suggests it is unwilling to absorb all of the increased costs, while Sweeney believes a company with Steam’s financial strength should be able to do so.
Whether the backlash affects Steam Deck sales remains to be seen. The handheld still has a strong reputation for performance, convenience, and deep Steam integration. However, with prices rising and competition growing, Valve may face more pressure to prove that its hardware remains worth the premium.
