On May 27, Valve announced a significant price restructuring for its Steam Deck handheld gaming console. The company discontinued the entry-level LCD model while implementing price hikes across its OLED lineup. Notably, the 512GB OLED variant saw its price jump from $549 to $789, while the 1TB OLED model escalated from $649 to $949, marking an average price increase of roughly 54%.

The aftermath of this pricing strategy was immediate and stark. Sales of the Steam Deck plummeted, with current weekly sales figures dwindling to a mere 18% of their pre-hike levels—a staggering 82% decline. This downturn also translated into a substantial 72% drop in weekly revenue.

Previously, the Steam Deck had carved out a competitive niche within the $399 to $649 price bracket. However, post-adjustment, it now finds itself in the more premium $789 to $949 segment, where it faces intensified competition from rival Windows-based handheld consoles. Looking ahead, the Steam Deck's future sales trajectory may hinge on several pivotal factors. These include potential further price reductions, the introduction of the much-anticipated Steam Deck 2, or simultaneous price hikes by its competitors in the market.