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Two years ago, it seemed we were heading into a golden era of accessible, inexpensive video games on open platforms, whether you wanted to play at home or on the go. Devices like the Steam Deck showed that PC gaming could be streamlined like a Nintendo Switch, while publishers acknowledged that making their wares available to everyone was a better move than locking them into a single ecosystem.
Then everything went pear-shaped.
An unforeseeable demand for AI data centres has squeezed component-makers out of manufacturing queues, driven prices through the roof and shifted business models almost overnight.
In announcing price adjustments to some of its machines last week, Microsoft said the amount it pays for memory and storage had increased by 2.5 times, and that it expected another doubling by mid next year. Microsoft said that in the US, the price of its Xbox Series S will jump about 20 per cent from August, suggesting similar hikes are on the way here.
Apple’s Tim Cook has said he has never seen anything like it. Last week Apple also raised the price of hardware including MacBooks, iMacs and iPads by about 20 per cent. And the price rises hit even harder for companies and individuals who don’t have the bargaining power of a tech giant. PC gaming is cheaper than console in the long run because of the broad ecosystem of competing stores, and because your purchases can move to any device. But, given current prices, are the latest developments still worth a look?
Handheld gaming PCs: power in your palms
Moving PC games away from the monitor, keyboard and mouse and into your train commute was a pipe dream just a few years ago, and while the experience is still not perfect, it’s been a revelation for those of us with big digital libraries. It’s also an excellent starter platform if you don’t mind a learning curve. But the latest local price tags are a tough pill to swallow.
The new kid on the block: MSI Claw 8 EX AI+
Premium hardware manufacturer MSI last week released the latest in its line of Claw handhelds, benefiting both from Microsoft’s Xbox Mode on Windows 11 and Intel’s suite of AI-powered upscaling and frame generation. I’ve been testing this device and it is legitimately a significant leap forward for gaming performance in a handheld. Unfortunately, it’s also a significant leap forward in pricing. In Australia, it goes for $2749.
In brand-new blockbuster games I was able to tweak performance close to the screen’s maximum resolution and frame rate (1080p, 144Hz), or dial the juice right back to get six hours out of a charge where I would barely get two at full power. Most often I turned the AI features off and stuck at 60Hz with mid-high graphical settings, and thanks to the comfy Xbox-style controls I tended to get immersed in the games and forget I was even playing on a compact device. Versus my ASUS ROG Xbox Ally X I got similar performance at around half the power usage, which is impressive, but the Claw costs $1000 more. For most people who have an established PC gaming library they want to take on the go, the price will be tough to justify here, even with the extra capability on offer.
A sensible approach: Valve’s Steam Deck
Despite its age and price rises, the Deck remains the obvious choice for most people. SteamOS sidesteps the need for Windows entirely, quietly taking care of all your drivers and settings and updates and another annoying PC gaming things. The original Deck is good value at $650, and although its specs may seem dinky compared to the above Claw (with a 60Hz display, 256GB storage, and a processor with much smaller power draw), it’s efficient enough to get hours of good performance out of many games if you don’t need to play 2026 blockbusters. The $1200 Steam Deck OLED adds a far superior screen, more storage and around 50 per cent more battery life.
If you’re absolutely wedded to Windows — because you like Game Pass, or prefer stores that are not Steam, or you play online games like Fortnite and Call of Duty that are blocked on Linux — the closest option to that $650 Steam Deck is likely the ASUS ROG Ally Z1, or the ROG Xbox Ally which is a little more expensive, a little less powerful, but longer-lasting and comfier.
Other alternatives:
- If you don’t have a PC games library, the Nintendo Switch 2 has a 1080p, 120Hz screen, comes with a dock for playing on your TV in 4K, and you could buy four of them for the price of one MSI Claw 8 EX AI+. Con: Many brand new big-budget games don’t make it to the Switch 2.
- If you’re mainly focused on indie or retro games, there are also hundreds of handheld systems running Linux or Android available from companies including Anbernic, Retroid, Ayaneo and Miyoo. Con: Finding a legal way to access your favourite retro content can be a minefield.
Living room PCs: taking on the consoles
It’s been possible to plug PCs into TVs for a long time, but the operating system and peripheral requirements have made this a cumbersome way to play games. Lately, Microsoft is making some long-overdue changes that help here, but the biggest moves have been made by Valve, the company behind dominant PC game marketplace Steam.
The new kid on the block: Valve Steam Machine
When Valve announced its living room PC last year, it was touted as an extension of the Steam Deck that would greatly streamline the experience of PC gaming, providing power, aesthetics and price in line with current consoles. That would mean entry-level 4K capabilities at around $1000, and an easy way to get any PC game onto your TV without a hulking, noisy tower or the need to build anything yourself. But this was all before manufacturing went haywire.
Last week Valve announced that the Steam Machine would start at $1609 in Australia for a device with a comparatively small 512GB storage drive, going up to $2109 for a device with 2TB. To be clear, though this is higher than originally expected, it’s bang on what it would cost you to build a device with similar performance right now. And Valve is doing the building for you, promising size and cooling efficiency that would be practically impossible in a DIY project. The main question is whether enough units can be made to satisfy demand, with orders for the initial shipment already taken via raffle and Valve now keeping a waitlist for future machines.
A sensible approach: DIY or pre-built
Building a PC has never been easier than it is right now, even though it’s usually been much cheaper. And the good thing about a DIY build is that, with a little research, you can decide what tradeoffs to make, what performance to target, and even what software to run. Valve says that its next version of SteamOS will be available for anyone to download and run on their machine (only AMD graphics cards will be supported at first), so you could effectively make your own Steam Machine. I specced a machine from in-stock parts aiming to match the Steam Machine (with an RX7600 graphics card) and it worked out at just over $1600.
Currently, you can expect to blow 40 per cent of your budget on a graphics card, 40 per cent on RAM, processor and motherboard, and 20 per cent on the stuff that hasn’t been affected by price hikes. The DIY method has the advantage of long warranties on each of your components, but even with a lot of research and a tool like PC Part Picker you don’t always save money compared to pre-built machines. Especially here in Australia. If you keep your eyes out for promotions on local retailers, you can often find pre-built towers going for $1500 that would cost you a bit more to build yourself.
Some other alternatives:
- If you don’t need access to PC games, Sony and Microsoft get way better per-unit component prices, so consoles are good value despite recent hikes. For the cost of the smallest-capacity Steam Machine you could pick up both a PlayStation 5 and an Xbox Series X.
- Cloud streaming is now viable too. Both Nvidia GeForce NOW and Xbox Game Pass start at less than $20 per month. That’s eight years of subscriptions before you hit what it would cost you to build a solidly capable PC today, assuming the access price doesn’t go up. (It will.)
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