You can install a SteamOS-style console experience on any old PC, including handhelds or mini-pcs with integrated graphics. Bazzite is a great choice for that, even my RX560 handles it without issue.

> a Nintendo Switch would provide much better bang for you buck.

A secondhand Steam Deck would also be better value, but this isn't a value-focused product. The Steam Machine is Valve's second stab at the premium couch-based PC gamer market, this time with Proton and a bigger focus on controller usability for ordinary PC games.

Find me a PC in this form factor that is as well tested and supported as the steam boxes are, with the specs they are claiming to have, at this price. Its a little above the curve but a little is not a lot, and you get a fully supported Linux box at that price.

.....and if you think this is expensive just wait until the PS6 and new Xbox are released.