I think Valve never had intentions of making profit with its hardware division (Probably why they have a 2-year warranty and don't mind hardware returns that much). They just don't want total loss leaders ala Costco Hot Dog, so are trying to find a good balance.
"We don't want people to think we're getting into hardware because we want to make a ton of money, because hardware is traditionally a low-margin, crappy business. We believe that in order to push the company's platforms forward we need to design hardware that brings better experiences for people."
(paraphrased) Gabe Newell, from Bringus Studios' video "Valve's Secret Computer that I'm not supposed to have" , with interview footage provided by Tyler McVicker.