> We think of Steam Machine as an extension of PC gaming, not as a console.

But is that really so bad? I don't want to say 'sell it at a loss' but loss leaders don't need to bankrupt their companies in order to do their job.

If you sold them at or below cost then people would figure out how to buy 100's and make server farms out of them. Particularly for this hardware. The awkwardness of the hardware being made up for by the subsidy from the manufacturer. But pricing them at break-even would still be good business.