Of course my prediction depends on the success of the Steam Machine, but I expect it to be highly successful, just like the Steam Deck, another piece of Valve hardware game studios have been pretty much forced to optimize for due to its success.

I disagree that the target market won't accept the price. I see the target market as less technical people, who don't care about hardware specs, but just want to play Steam games without issues.

The price is in the same region as an iPhone, and if you care enough about PC gaming to buy a gaming PC at all, you are certainly willing to spend at least as much money on it as you spent on your phone.