I think it was supposed to be priced in below the PS5 Pro but due to ram supply issues and just general silicone allocation issues it was not to be. The steam decks $200 price bump tells as much

The Steam Machine makes sense if it costs the same or less than a current-gen console, but a whole grand for this feels icky. I paid around $300 for the original Steam Machine (Alienware Alpha) in 2014. It played Fallout 4 better than the PS4 and Xbox One which cost about the same. The "tradeoff" was that you had to maintain the PC's OS, which at the time had to be Windows 10.

Well, the steam machine was supposed to be 850 dollars (mentioned on LTT) which is 50 dollars cheaper than the PS5 Pro, you get a smaller machine that you can do whatever you want with and are not required to pay any online subscription fee ($80) a year.

If the price was not upset by the RAM debacle it would have been a very attractive offer, no subscription and more upgradable. I still think in time when the market calms down and supply is less constrained it will reach that price point, even at its current price it's not a completely unreasonable offering for a family member especially with the ability to share your existing steam library.