Valve Explains Why It Doesn’t Subsidize Its Hardware Platforms
Valve believes that open systems are superior for both the company and its customers in the long run. They argue that the PC ecosystem's openness drives hardware and software innovation by allowing anyone to pursue new ideas. Selling hardware at a loss or securing exclusive content creates closed systems where user choice is limited. Valve wants PC hardware to remain an open platform, offering their devices as one option among many. This allows consumers to choose based on their individual priorities like price and performance. Subsidizing hardware, they contend, contradicts the principles of an open PC platform. The author criticizes console manufacturers like Microsoft for using subsidized hardware as an excuse. They view this strategy as predatory and praise Valve for selling at honest prices. Mobile phone subsidies differ, being driven by carriers, not directly by manufacturers like Apple. These carrier subsidies are recouped through monthly service fees, unlike console sales where profit relies on game purchases.