If the new Xbox is launching next year, which will be considerably more powerful than the Steam Machine, that has to exert some pressure on Valve to price it lower. I don't expect the new Xbox to be cheap but many people are talking about $1000 Steam Machines.
I suspect it's probably the other way around, if the Steam Machine is $1k, the new Xbox Magnus will be $1,500, or something. Microsoft will probably have expectations to shift in larger volumes, however I suspect the economies of scale is really this new AMD APU being used in lots of new first-party and OEM machines, as per those rumours first appearing over two years ago.
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