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Valve says it isn't subsidizing the Steam Machine's $1050 price because of its "religious" refusal to "build a more closed system"
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I say "upgrade" but it's actually a repairability issue as well. If something breaks, getting a replacement part is not as easy as going to any pc store/amazon/newegg and getting what you need. You'll have to go through steam/ifixit and it will most likely be more expensive than the equivalent pc part. You also can't replace just the cpu, gpu or motherboard. If any of those breaks, you have to replace the whole thing.