State of the PC gaming handheld market

[txa1265]

Whelp, I was wrong looks like the popularity of the asus handheld far exceeded what Asus was expecting

The handheld PC hit: ASUS admits ROG Xbox Ally X demand "exceeded expectations" and is ramping up production to end stock shortages

Even just basic math has that as them selling ~250,000 per quarter, which would put it in the same order of magnitude as the Steam Deck. Given the tons of marketing and high priced presence at Best Buy and other stores, I can see that ... though it also means they are likely losing money on every sale. Not unheard of and a solid gamble. Good for them.

 

[dmccloud]

Even just basic math has that as them selling ~250,000 per quarter, which would put it in the same order of magnitude as the Steam Deck. Given the tons of marketing and high priced presence at Best Buy and other stores, I can see that ... though it also means they are likely losing money on every sale. Not unheard of and a solid gamble. Good for them.

Losing money on hardware has been a foundation of the home gaming industry for decades. They're likely making it up on the back end through subscription services or deals with other companies.

 

[txa1265]

Losing money on hardware has been a foundation of the home gaming industry for decades. They're likely making it up on the back end through subscription services or deals with other companies.

But not PC gaming - look at it this way, ASOS only gets profits through hardware, which means that Microsoft has to be dumping kickbacks to them to take a loss. Most hardware makers not only DO NOT get that, they have to pay for Windows licenses on top. It is a stark difference.

Valve is operating on the 'Console Business Model' .. ASUS is essentially dumping to gain market share. Which is grey area legally.

 

[diamond.g]

But not PC gaming - look at it this way, ASOS only gets profits through hardware, which means that Microsoft has to be dumping kickbacks to them to take a loss. Most hardware makers not only DO NOT get that, they have to pay for Windows licenses on top. It is a stark difference.

Valve is operating on the 'Console Business Model' .. ASUS is essentially dumping to gain market share. Which is grey area legally.

IIRC Valve took a small loss on the OG base Steam Deck, the others were profitable. Apparently they are signaling that the Steam Machine will not be sold at a loss, so take of that what you will.

 

[dmccloud]

But not PC gaming - look at it this way, ASOS only gets profits through hardware, which means that Microsoft has to be dumping kickbacks to them to take a loss. Most hardware makers not only DO NOT get that, they have to pay for Windows licenses on top. It is a stark difference.

Valve is operating on the 'Console Business Model' .. ASUS is essentially dumping to gain market share. Which is grey area legally.

ASUS is likely making enough profit on PC components (motherboards, GPUs, etc.) to offset any losses on the handheld side. That is where most of ASUS' revenue comes from, and Microsoft has no bearing or influence on that side of things. Additionally, Microsoft sells Windows licenses to OEMs at a sizeable discount over retail, especially at larger volumes. Not sure where you get "dumping" from at all.

Given that Valve has said the Steam Machine will be sold at a price "comparable" to a gaming PC, chances are they are gonna price out a large segment of the very market they are targeting. That might be strategic if they are looking at low production yields in the beginning, but it does not bode well if profitability is their upfront goal.