I don't know much about PCs or consoles. Is a Steam Machine essentially a gaming PC made to work like a console?
Is a Steam Machine basically a PC in console form?
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sudoku-after-supper
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Yep, that's a good way to think about it. It's a small gaming PC designed to give you a more console-like experience, with a gaming-focused interface and controller-friendly setup.
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The software is part of the difference. SteamOS is based on Linux and has a gaming interface meant for use with a controller and a TV. You can also use the underlying desktop as a regular computer.
So it's not restricted to being a console, even if that's the experience it aims for when you turn it on.
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The compact size is worth factoring in. A small, ready-to-use machine can be appealing if you want something that fits neatly by a TV, but a larger PC you build yourself may offer better specs for similar money.
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_borrowed__broom:
That tradeoff depends on how much you value the size and convenience versus getting more performance for the price.