Valve Is Running Apple's Playbook in Reverse
a day ago
- #Valve
- #Steam
- #Gaming
- Valve's Steam Machine 2.0 represents a second attempt at living room PC gaming, learning from the failure of the original Steam Machine.
- Gabe Newell identified Apple as a major threat to PC gaming, leading Valve to adopt a reverse strategy of Apple's ecosystem approach.
- Valve's path involved starting with game development, creating Steam for game updates, then expanding into a full store and services before entering hardware.
- The original Steam Machine failed due to underbaked software, self-cannibalization by Steam Link, and an unclear target consumer demographic.
- Steam Machine 2.0 benefits from a matured software ecosystem, including Proton compatibility, and a clearer value proposition as part of Valve's hardware trifecta.
- Both Valve and Apple view piracy as a service problem, focusing on providing a better user experience to convert pirates into paying customers.
- Valve and Apple have cultivated cult-like followings, with strong brand loyalty and customer anticipation for new products.
- Valve differs from Apple by avoiding strong lock-in, promoting open ecosystems and user freedom with their hardware.
- Steam operates as an aggregator, benefiting from direct user relationships, negligible marginal costs, and demand-driven growth.
- Future challenges for Valve include potential regulation, competition from cloud gaming, and the need to strengthen social infrastructure to maintain platform dominance.