Valve’s entry into the portable gaming arena challenging the niche carved out by Nintendo Switch was initially met with critical acclaim and consumer interest. While the Steam Deck impressed on a technological level, it consistently fell short of handheld sales benchmarks after a series of setbacks.

Fresh data from a newly published report indicates that Valve’s hardware division is struggling, with market performance deteriorating sharply over the past several months.

External economic pressures have forced the company’s hand and the resulting decisions have already impacted the market, according to an analysis.

Steam Deck OLED 1TB $949 USD

Why Steam Deck Sales Plummeted by 82%

The core driver behind the downturn, as detailed in an analysis by Boiling Steam (via Wccftech), points squarely to Valve’s own strategic moves.

Despite steady sales through the first half of 2025, everything changed in May, when the company announced significant price hikes on its OLED models: the 512 GB variant jumping from $549 to $789, and the 1 TB edition surging from $649 to $949.

According to the graph, sales data reveals a catastrophic 82% collapse, with weekly unit movement dropping from 11,000–18,000 to just 1,400–3,000 by the current month.

Valve attributed the price adjustment to a broader component supply crisis, leaving the company with little room to absorb rising manufacturing costs. Yet the commercial consequences have been swift and severe. The same supply-side pressures are now casting a shadow over the upcoming Steam Machine debut, which analysts predict will struggle to retail for under $1,000.

Ventas de Steam Deck
Las ventas de Steam Deck se derrumbaron (imagen: Steam Boiling)

Another Decision by Valve Also Impacted Sales

Compounding the pricing fiasco, Valve made another controversial call that appears to have backfired.

In December 2025, the company announced the discontinuation of the more budget-friendly LCD model, pledging only to sell through remaining inventory, which made people lose interest.

The LCD variant had long served as the value proposition in the Steam Deck lineup. These were its prices:

Steam Deck LCD Price Comparison (USD)

Steam Deck LCD 64 GB

  • Launch price: 399 USD
  • Official discounted price: 349 USD (-12.5%) M
  • Minimum sale price: 296.65 USD (-25.7% vs. launch)

Steam Deck LCD 256 GB

  • Launch price: 529 USD
  • Official price after OLED arrival: 399 USD (-24.6%) Minimum sale price: 319.20 USD (-39.7% vs. launch)
  • Steam Deck LCD 512 GB
  • Launch price: 649 USD
  • Official discounted price: 449 USD (-30.8%)

For more news on the gaming and entertainment industries, click here.

Stay tuned to LEVEL UP for continuing updates.