Why is everyone assuming that you can only make a profit if you are the market leader? Even if you have a percent of Sony and Microsofts market share in the console market, you can still make a shit load of money of it.

Their original steam machine failed because Steam OS didn’t have Proton yet back then, so devs had to create dedicated linux versions of their games, drastically reducing steams catalogue. Now that they have perfected proton, they beat PlayStation and Xbox with their massive amount of games across way more niche genres.

It could easily target people that don’t want to tinker with hardware or settings on PC but still want to have all of the games that steam offers.