Will Valve’s Steam Box Succeed In The Console Market?

Valve’s “Steam Box” Console

This past summer, Valve, the maker of countless hit games and owner of steam a digital distribution platform announced that it will be releasing a new console known as the “Steam Box”. So how will this compete with the current market holders PlayStation and Microsoft XBOX? Their main objective is to bring the perks of PC gaming into the comfort of the living room. In a sense, bridging the gap between PC and Console gaming.

I think this is a bold move by Valve and an unexpected one in many ways. The barriers to entry of the gaming console market are extreme to say the least. PlayStation and Microsoft make up somewhat of an oligopoly with the exception of Nintendo. It will be difficult for the Steam Box to compete. I believe they have done a fine job in differentiating their product. One example is advertising the connection between PC and Consoles. However, they have also released a new design controller, with the most obvious change being no joysticks. This could drive away consumers who prefer the old controller design and would rather not waste time learning how to use a new controller.