Valve raised the prices of its Steam Deck models on May 28, with the 1TB version increasing nearly 50%, jumping $300 to a new price of $949, and the 512GB model rising $240 to $789 [1, 2]. Valve attributed the higher prices to global logistical challenges and surging memory costs [1].
Epic Games CEO Tim Sweeney publicly challenged Valve’s explanation on social media. He implied the price hikes were partly due to expenses linked to Valve founder Gabe Newell’s lavish lifestyle, specifically his $500 million superyacht, Leviathan. Sweeney said, "Everyone’s being too harsh here. There has been a significant rise in the cost of components that Steam customer spending ultimately funds, and economic trends have created severe disruptions in the component parts supply chain for megayachts" [1].
The Leviathan is a 111-meter vessel outfitted with an onboard hospital, submarine garage, gyms, gaming PCs, spa, and bar [1]. Sweeney’s comments drew swift reactions from players and the public. Many defended Gabe Newell and Valve, pointing out the company’s stable workforce compared to Epic’s recent troubles [1, 3, 2].
Epic Games laid off over 1,000 employees in April amid declining Fortnite revenue, while Valve’s last layoffs were 13 employees in 2019 and some cuts in 2013 [1, 3, 2]. Some gamers criticized Sweeney for focusing on mocking Valve instead of addressing issues with Epic’s own platform, like its launcher [3, 2].
The Steam Deck OLED model price hike announced on May 28 raised prices for the 512GB and 1TB versions by roughly $240 and $300, respectively [1, 2]. This came after Epic’s layoffs and declining revenue earlier this year.
Valve continues to cite supply chain and memory price increases as the cause of the Steam Deck price changes, while Sweeney links it to the founder’s extravagant yacht. The public debate highlights tensions between the two major game companies.
Epic Games will next report earnings expected to reflect ongoing challenges following the layoffs and Fortnite revenue dips.
