Ok sure while the R7(780m)/32GB/1TB "Mini-PC" I purchased for $400USD in Nov 2025 now costs ~$795USD in June 2026 there are price point economics at work here.
Historically a "gaming console" was priced at ~1/4-1/2 as much as a "gaming PC". However with the Playstation, Xbox (and even Nintendo Switch2!) costing > $500USD (and getting near $1000!) while many "low end" PC parts and systems costing the same or less than consoles it is difficult to recommend any of the consoles.
Granted the 'consoles' have the 'plug & play' feature where PC gaming often involves lots of 'fiddling' to get titles to work properly.
The 'SteamOS' and likely the Steam Machine can and does remove much of whatever "pain points" that PC gaming may have however at the current price point I would not be surprised that the Steam Machine does not sell well.
The Steam Machine was eagerly anticipated for months. After the official price reveal, however, the mood in the community has become noticeably subdued. Among more than 2,700 Reddit comments, hardly anyone says they actually plans to buy one.