Valve directly stated that they had to reconsider their pricing for the steam machine (i.e. increase it substantially more than originally intended) because of the obscenely inflated costs of components. This isn’t just about the steam machine being “too expensive,” the prices for it are quite literally far higher than they should be, albeit with it being for the most part out of Valve’s hands. It’s far more complicated than consumers being greedy and desensitized.

Source for Valve’s statement: https://www.pcmag.com/news/valve-confirms-steam-machine-will-cost-over-1000-heres-how-to-buy-one

Valve notes that the RAM crunch has impacted pricing. “The overall effect is that our original goal for the price of [the] Steam Machine is no longer viable,” it says. “So the prices we’re sharing today reflect the state of the world for manufacturing. Or, more accurately, it reflects the price of the components as we’ve secured them over the past six months.”

I have no doubt it is with the way the prices have been with memory and gas for a while now at this point. Not necessarily Valve’s fault, but it’s gonna suck ass regardless.