While you are technically correct, 99% of all games that are going to be played on this device are going to come from steam where they take a 30% cut.

I don't know how much money they make from each unit but major profit is not the goal here. They want to sell more games to more casual people who don't even own a PC anymore.

Steam Machine is PC. Attempt to answer why I should not buy subsidized PC for work, install whatever OS, not buy any game.

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