The Steambox is here!

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Ok well not exactly...

http://www.engadget.com/2013/09/12/gigabyte-brix-gaming-pc/

Now as someone who has built his own computers I know this isn't exactly what a true PC gamer would want but this seems like a step in the right direction for what a Steambox could be. Dedicated graphics are king but...This is something small and convenient that can easily be added to a TV and play games. Might be good for the average consumer if APU's continue to evolve and get more powerful.

I might also just like this because it looks like a mini-gamecube.

 
That device looks cool but way too expensive.  ~$500 and its a bare-bones pc so you need to buy your own RAM, HDD, and operation system for it.  People think $500 for an Xbox One is expensive so I have no idea who would buy one of these things at this price.

That's the problem I see with these "steam boxes" they're too expensive for the average consumer and the more informed gamers know that in the long run a standard gaming pc is a better buy. 

 
Isn't that title a bit misleading? This isn't the Steam Box. Valve is making their own machine and that is what will likely be the Steam Box. The same was said when the (laughably overpriced/underpowered) Piston was revealed, before Valve said "that's not a Steam Box". 

And who's the target? Console gamers, who can get much more powerful systems for less? Casual gamers who probably won't know shit about OS, HD or memory? PC gamers who can build a much better rig with the same amount of money? 

 
Yeah, Gabe Newell is making noise again.

Frankly, I don't think Valve has the chutzpah to put out their own hardware. They are a software company, first and foremost. I think the big announcement is going to be a Steam-optimized, game-focused Linux distro. Valve's very own operating system for desktop machines. That would give developers a single software platform to shoot for when porting the game to Linux. It would also make it easier for Valve to work with hardware companies to make sure that their drivers target Valve's distro. That would allow them to maintain consistent rendering standards.

 
Yeah, Gabe Newell is making noise again.

Frankly, I don't think Valve has the chutzpah to put out their own hardware. They are a software company, first and foremost. I think the big announcement is going to be a Steam-optimized, game-focused Linux distro. Valve's very own operating system for desktop machines. That would give developers a single software platform to shoot for when porting the game to Linux. It would also make it easier for Valve to work with hardware companies to make sure that their drivers target Valve's distro. That would allow them to maintain consistent rendering standards.
Even if Valve is a software company, they have tons of data on hardware and hardware performance that Steam has been collecting for years now. I'm guessing Valve can probably put together a decent machine. I know they're planning on targeting it for the living room, but I'm curious to see if it's customizable (like the tradition PC or HTPC) or is basically a PS4/X1-esque console with fixed hardware.

They've been talking to hardware companies so I think everyone's assuming that they're making some kind of a system, but you make a very good point. Maybe they're just talking to hardware companies to support a gaming optimized OS they're working on.:whistle2:k

 
Part of the reason why I think it will probably shake out this way is because Gabe Newell has been stressing the open strengths of Linux so much.

If Valve assembles a "Steam-Box" that is running any version of Linux, it will be possible for any and all other hardware companies to make their own version. That may very well happen, but if it does, Valve will simply be an impetus. And all of those hardware companies aren't likely to follow suite unless they think there is another reason.

Valve building an open computer is only slightly different from ME building an open computer. I've built plenty of computers, even computers that I've installed Ubuntu on. I'm typing this right now from my Ubuntu box that has Steam installed and running on it. Assembling a box that runs Linux and Steam is no real challenge. Even with all of that optimization data, and even with a smaller form-factor, a "Steam-Box" PC isn't all that much to boast about. Especially not when you're selling it to the PC gaming crowd. That whole audience is full of do-it-yourself enthusiasts who would probably prefer to build their own boxes.

But a Valve-developed OS? They could make that open, as it would just be a Valve-managed Linux distro. But they could also pump it full of a lot of the optimizations they've been making in Big-Picture mode. Make the whole OS compatible and optimized for gamepad controls. Have default APIs for all the developers to use. Convince NVidia and ATI to keep their 3D card drivers constantly updated for Valve's version of the OS. (a common complaint among Linux gamers)

It doesn't really benefit Valve to have an open PC, even a small one. But a Steam-focused OS could be huge. It wouldn't even need to be that much of an overhaul. Optimize a few areas with gaming in mind, tie it into Big-Picture mode, and give it a Steam-themed skin. Roll out regular updates with new features and optimizations over the coming years, just like they did with the original Steam.

 
As someone who uses all 3 OS(s) I think Steam has an uphill battle with anything Linux. Look at the Linux usage statistics that Cheapy just posted here on CAG. It's such a small fraction of people. I'm actually a fan of Ubuntu but they need to do it in a way that forces people to use Linux and not even know it. That could simply be a modified Linux box that runs the Steam OS, but I think if they are going to do hardware it's got to be simple for the non-techie end user. Maybe from what your saying though there could be both Steam boxes labeled as such with everything pre-installed similar to an openelec (XBMC) distro and then the same OS as a downloadable for the builder crowd that could dual boot it or use it as they see fit being open source and all.

 
There is another alternative. The recent articles strongly indicate that Gabe Newell is going to announce SOME manner of hardware in the near future. If it is going to be hardware, I would say that it will be some manner of controller interface. A custom-designed controller with couch-based PC play and use in mind.

 
Unless the Steambox is Valve's version of the Playstation Vita TV, I'm not really sure I see the point of it. I'd pay $100 to stream games and everything else off of my PC and onto my TV, but I would be hard pressed to buy a dedicated piece of hardware.

 
I'm interested in a box that can play steam games, blend into my tv stand as well as a console, doesn't require a keyboard or mouse at all, and costs around $500. I don't care about max settings. Just something that could run games on par with the PS4/X1 versions.

I have no interest in true PC gaming, but I'd love to get games in steam sale prices rather than console prices.
 
I would be fine if Valve just released a lap-board designed for comfortably using a keyboard and mouse from my couch. That has been the biggest impediment to PC gaming on my big screen.

 
I'm interested in a box that can play steam games, blend into my tv stand as well as a console, doesn't require a keyboard or mouse at all, and costs around $500. I don't care about max settings. Just something that could run games on par with the PS4/X1 versions.

I have no interest in true PC gaming, but I'd love to get games in steam sale prices rather than console prices.
The problem with that is that consoles like the Xbox One and Playstation 4 have a very different model than Steam. Microsoft and Sony are able to sell their hardware at prices lower than production cost because they hope to make that money up in licensing fees, accessories and subscriptions. Valve doesn't have to worry about subsidizing anything, so when they have these big sales they still make money since their costs are lower.

If you want Steam sales for a PC in your living room, they make multimedia center pcs. Dell sells the Alienware X51 which looks quite nice, but to get specs on par with Xbox One or PS4, it will cost much more than $500. The same would be true if Valve makes their own because they wouldn't be able to sell their piece of hardware for below cost.

Edit: You know, the Nvidia Shield actually has an HDMI port. If Nvidia released one of those to be used for the TV and not as a handheld, I would be totally interested in something like that.

 
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I'm interested in a box that can play steam games, blend into my tv stand as well as a console, doesn't require a keyboard or mouse at all, and costs around $500. I don't care about max settings. Just something that could run games on par with the PS4/X1 versions.

I have no interest in true PC gaming, but I'd love to get games in steam sale prices rather than console prices.
Well, essentially you want a console then, which is what you already have.

 
Well, essentially you want a console then, which is what you already have.
Absolutely. I'd just like a console with access to the Steam store.

Hell, even if I didn't get one it would at least put pressure on the console makers to stop having such terrible prices/sales in their digital stores.

Console games just cost too damn much for the enjoyment I get out of them relative to my other hobbies these days.

 
Isn't the whole point of the Steambox to allow you to upgrade it down the line?  That's the one area where they could crush consoles--no console has even been upgradeable in terms of graphics, besides the N64, and those of us old enough remember how well that turned out.  Devs were forced to give the option for running the expansion pack or not, which I'm sure they loved, while consumers that didn't have it felt they were missing out, I had it and part of me didn't want to support games that didn't support the expansion pack.

If the Steambox had the option to swap out a graphics card every year or so and run old and newer games better--and for a fraction of the cost of upgrading to a new console or a PC--that's something that I'm sure would appeal to a lot of gamers.  But for the hardware to be cheap enough to allow this the software would likely have to be priced more appropriately OR we would have to embrace more in game and on screen advertising to supplement the costs.  No option really sounds that great and I don't see any room for a market of "in between" console and PC gamers, but who knows.

 
I'd guess they'd more just want to try to smash consoles with offering the same games for lower prices.

It will be hard for Sony and MS to match prices with Steam Sales on their digital games as retailers would hate the physical game prices being undersold so much.

I'd guess people who upgrade video cards frequently are fine with their current gaming PCs and aren't the target market for any Steambox. I'd think they'd want to make it more console like (i.e. idiot proof for non tech-inclined people like myself) to get some sales from console gamers who want the cheaper digital games.

 
Well, now Valve has a teaser up on the official Steam site. Whatever this announcement is, it's going to be big, and it's happening Monday. We were speculating before, but this throws some extra fuel on the fire.

It also seems clear that there is going to be more than one thing announced. The teaser site has three slots, indicating that there will be three major components to Valve's new initiative. Time to post your best guesses. Here are mine.

1. A Steam-based micro-console. A lot of people seem to think the fabled Steam-Box is going to be a mini-PC. I think it far more likely that Valve would opt to design and develop their own micro-console. I think they've waited to release it until 2014 because it's going to coincide with the release of Intel's new line of Haswell chips. Qualcomm's focus on cell-phone architecture makes for decent Android micro-consoles, but what about a micro-console designed around standard PC architecture? A Steam-Box micro-console powered by Haswell could run a substantial number of PC games within an affordable form-factor.

2. A Steam-optimized and designed controller, and a Steam-specific API for integrating support for it into games. Microsoft is currently considered to be the standard as far as PC game controllers are concerned. If Valve is serious about breaking away from Windows, and getting PCs into the living room, defining a new standard for PC game controllers is one of their primary tasks. Making a programming API available in the Steam SDK for standard controller support is also a big step. It's possible we will see more than one controller design. I'm thinking a 16-bit standard controller, a dual-analog controller, and a flight stick. The API for these controllers will be open, so other companies will be able to design hardware for that standard.

3. A Steam-specific Linux Distro. I'm still convinced there is significant possibility in this idea. I also feel it would be the best method for Valve to encourage Linux adoption. As accessible as Ubuntu and other Linux distros have become, a standard version with Valve overseeing it's continued development would help immensely with promotion. Valve offering software through the Steam store will also be a major component. Steam has significantly greater developer trust than most other digital distribution platforms. People would be willing to buy productivity software through Steam, even on a Linux box.

 
I'm actually a little anxious now to see what they announce. It's weird because I'm not 100% it will be a game changer but it seems to me a dedicated box is the only way to dummy proof it. I'd think Valve with this initiative would be trying to hit the consumers they can't reach already and that would rule out system builders. If it is a micro console we might just get something like the BRIX computer...something small with the Intel Iris Pro graphics. I think what the PC crowd isn't realizing is it might not necessarily be geared towards them.

 
Absolutely. I'd just like a console with access to the Steam store.

Hell, even if I didn't get one it would at least put pressure on the console makers to stop having such terrible prices/sales in their digital stores.

Console games just cost too damn much for the enjoyment I get out of them relative to my other hobbies these days.
Yup, exactly. I could go for this. Either a console version of the steam store (With steam prices) Or some sort of box that hooks directly to the TV that runs Steam. (For $100 or less)

Actually, considering the less than HD many indie/steam games run in, something on a hand held size would be even better.

I'd hate playing something like FTL or To the Moon stretched way out on my giant TV screen.

 
EA and Microsoft must be shitting their pants.
I don't know about that.

But if those companies were smart, they would at least be getting nervous. This move is both brilliant and subtle. It isn't designed to turn things around in the PC gaming scene overnight. But the long-term ramifications are potentially huge. I am reminded of the original launch of Steam. Through patience and constantly evolving services, Valve may be able to turn the PC industry on its head.

 
HAH! Called it. #3 is confirmed. They're making a Steam-based operating system.

I don't know about that.

But if those companies were smart, they would at least be getting nervous. This move is both brilliant and subtle. It isn't designed to turn things around in the PC gaming scene overnight. But the long-term ramifications are potentially huge. I am reminded of the original launch of Steam. Through patience and constantly evolving services, Valve may be able to turn the PC industry on its head.
HAHA Nice call! You hit it on the head. I guess this is only the beginning (Steam OS) but in a way it's weird because inevitable it's going to lead to a STEAM box or a STEAM console of some sort. The only other thing is will a PC gamer jump on board? I would think a PC gamer would want more control over their system with more options that just a standalone OS would provide. I'll admit it though I'm intrigued by the game streaming option.

My current issue though is I also already have an htpc (running openelec to make it simple for the family) but I don't see this integrating well with that. I see that it is also a Linux based OS so game compatibility will be low to start. Might end up being good for Linux though.

It's going to get really interesting I think.

 
HAH! Called it. #3 is confirmed. They're making a Steam-based operating system.
Nice. I'm surprised it's free but that's a genius idea... I need to build a new gaming PC and it would be nice to not have to spend $100 on an OS. Plus, this is probably nowhere near as bloated as Windows.

I wonder what they'll do about support for non-Steam games/applications (like GoG, Origin, etc.). I'm guessing they'll allow non-game software (like productivity suite) so... this is gonna be interesting.

 
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The only other thing is will a PC gamer jump on board? I would think a PC gamer would want more control over their system with more options that just a standalone OS would provide. I'll admit it though I'm intrigued by the game streaming option.
PC gamers are going to be the first people to jump on board. By making the primary push of this initiative an open Linux distro Valve is providing PC gamers with as many options as they please. You want to just install Steam OS as a secondary operating system for dual-booting? Go right ahead. You want to throw together a cheap PC box for the living room, and install SteamOS on that? No problem. You want to keep running most of your PC games on your Windows box, and just use SteamOS for streaming to your living room? More power to you.

And this is just the beginning. This is just the best way for them to get a foot in the door. Inside of the next year, you're going to hear about major software applications being sold through Steam. Within the next three years, those same programs will have versions that are optimized for SteamOS. I'm not talking about just games, either. I'm talking about Photoshop, 3D Studio Max. I'm talking about productivity tools that people use for a living. First, they will be sold on Steam. Then, they will be ported to SteamOS.

Before long, you have people abandoning Windows and OSX in favor of SteamOS. As I pointed out, it won't be happening overnight. But look what Valve was able to accomplish with Steam in just ten years. Apple and Microsoft are both dropping the ball with their desktop operating systems. They are trying to make them work with tablets and portable devices. They are inadvertently giving Valve an opportunity to step in and steal the desktop market that they are abandoning.

 
Wait... 

"You can play all your Windows and Mac games on your SteamOS machine, too. Just turn on your existing computer and run Steam as you always have - then your SteamOS machine can stream those games over your home network straight to your TV!"  

You still need to have your PC on and the SteamBox (which will use SteamOS) will stream your game from your PC to your TV. I kept thinking this was an actual OS. Serious question: what's the benefit here, versus hooking up your TV via HDMI, other than minor convenience? 

 
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Wait...

"You can play all your Windows and Mac games on your SteamOS machine, too. Just turn on your existing computer and run Steam as you always have - then your SteamOS machine can stream those games over your home network straight to your TV!"

You still need to have your PC on and the SteamBox (which will use SteamOS) will stream your game from your PC to your TV. I kept thinking this was an actual OS. Serious question: what's the benefit here, versus hooking up your TV via HDMI, other than minor convenience?
I believe the streaming is in addition to the STEAM OS. Like if you already have a powerful gaming computer you could setup a little box for the TV and then stream to it. So it's both.

 
Serious question: what's the benefit here, versus hooking up your TV via HDMI, other than minor convenience?
There is no way that Valve could manage to get all developers, everywhere, to suddenly start porting their games to Linux. It just wouldn't happen. Even with the clout Valve has managed to gain, they couldn't swing something like that, not overnight.

But if they released a new OS based off of Linux, there are only a small percentage of current Steam titles that would be able to run on it. How would they be able to convince people to install SteamOS at all if there was little to no content they would be able to access on it. And how could they convince ANYONE to use it as their desktop OS if the applications they need don't exist on it?

THAT's where the streaming functionality comes into play. Instead of going out and building a secondary gaming rig, (which would run you $1,500+) you can just throw together a small, cheap box instead and install SteamOS on it. (between $150-$300) Now you can keep your SteamOS box in the living room, and use it for Netflix or streaming media over the network. If you want to play a high-performance game, you can just stream it off the gaming rig you already have in your office.

And that's just the first step.

 
Nice. I'm surprised it's free but that's a genius idea... I need to build a new gaming PC and it would be nice to not have to spend $100 on an OS. Plus, this is probably nowhere near as bloated as Windows.
Yeah I'm sure performance will be better without Windows. Honestly too Windows has had forever and a day to do something great with PC gaming and they have dropped the ball for years. Hopefully Valve will rectify that situation.

PC gamers are going to be the first people to jump on board. By making the primary push of this initiative an open Linux distro Valve is providing PC gamers with as many options as they please. You want to just install Steam OS as a secondary operating system for dual-booting? Go right ahead. You want to throw together a cheap PC box for the living room, and install SteamOS on that? No problem. You want to keep running most of your PC games on your Windows box, and just use SteamOS for streaming to your living room? More power to you.

And this is just the beginning. This is just the best way for them to get a foot in the door. Inside of the next year, you're going to hear about major software applications being sold through Steam. Within the next three years, those same programs will have versions that are optimized for SteamOS. I'm not talking about just games, either. I'm talking about Photoshop, 3D Studio Max. I'm talking about productivity tools that people use for a living. First, they will be sold on Steam. Then, they will be ported to SteamOS.

Before long, you have people abandoning Windows and OSX in favor of SteamOS. As I pointed out, it won't be happening overnight. But look what Valve was able to accomplish with Steam in just ten years. Apple and Microsoft are both dropping the ball with their desktop operating systems. They are trying to make them work with tablets and portable devices. They are inadvertently giving Valve an opportunity to step in and steal the desktop market that they are abandoning.
All very good points...it's definitely going to get interesting from here on out.

 
I guess now I have a new reason to use my Ouya... Someone get on putting the Steam OS onto my Ouya so I can play my PC games on my TV without having to build something else.

 
There is no way that Valve could manage to get all developers, everywhere, to suddenly start porting their games to Linux. It just wouldn't happen. Even with the clout Valve has managed to gain, they couldn't swing something like that, not overnight.

But if they released a new OS based off of Linux, there are only a small percentage of current Steam titles that would be able to run on it. How would they be able to convince people to install SteamOS at all if there was little to no content they would be able to access on it. And how could they convince ANYONE to use it as their desktop OS if the applications they need don't exist on it?

THAT's where the streaming functionality comes into play. Instead of going out and building a secondary gaming rig, (which would run you $1,500+) you can just throw together a small, cheap box instead and install SteamOS on it. (between $150-$300) Now you can keep your SteamOS box in the living room, and use it for Netflix or streaming media over the network. If you want to play a high-performance game, you can just stream it off the gaming rig you already have in your office.

And that's just the first step.
Ah, I see what you're saying. That definitely makes sense.

 
Reveal 2 is in 10 minutes or so. I hope this is the SteamBox because I don't want to wait until Friday to find out how much it costs, etc. :)

 
Reveal 2 is in 10 minutes or so. I hope this is the SteamBox because I don't want to wait until Friday to find out how much it costs, etc. :)
Personally, I'm still thinking controller. The symbol in question could be meant to indicate the Steam OS inside a box. But it also kind of looks like a controller. Particularly because the circle is offset to the left.

Update: Okay, today's announcement was a little disappointing. Not because it was bad, but just because it was pretty underwhelming compared to the SteamOS reveal. (which was a lot bigger than many people seem to realize) Steam Machines is basically announcing what most people had already guessed/surmised. Next year, multiple manufacturers are going to be making computers with SteamOS pre-installed. Most of these will probably be fairly tiny.

 
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Very disappointing if you ask me. I was expecting a console and a price. Instead we get a notice that there will be many consoles from many manufacturers and I guess skies the limit on price. Nothing announced. Nothing detailed. Oh well.

 
Honestly, I'd love to have Steam on a handheld. Alot of those indie games with tiny characters and retro 8 bit graphics don't fit well on a big 45+ inch screen.

 
The possible $500 price tag is a bit expensive, but you'd probably save tons of money through the steam, humble bundle, and gog sales haha.

 
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Yeah, with what they announced, specific price is kind of meaningless. I can assemble a capable PC for $300. I can sink $1,500 if I want to go for a full-on gaming rig. For a bare-bones SteamOS box, I could probably pull off one of those for $150 - $300. A manufacturer could probably sell SteamOS boxes for anything from $300 - $3000. The price ranges for these things is going to be immense, and as diverse as current PC gaming already is.

 
Perhaps it's just a matter of expectations. I thought they were going to compete with consoles, but instead are competing with Windows gaming PCs. Which may well be a worthy thing to do. It just wasn't what I was expecting.

 
Honestly, I'd love to have Steam on a handheld. Alot of those indie games with tiny characters and retro 8 bit graphics don't fit well on a big 45+ inch screen.
That's pretty much what a vita is at this point. It has most indie games and the ps plus deals are just as good as steam deals but they happen less often.

I wonder who Valve thinks the audience is for a "steambox" or their SteamOS. I can see some people building a inexpensive pc running SteamOS to stream their gaming pc to their tv but outside of that I don't see the appeal. A $400 PS4 will play all the noteworthy indie games, all the noteworthy third party games, and it has 1st party exclusives plus console exclusives games like Metal Gear Solid, Final Fantasy, Kingdom Hearts, etc. Who exactly will these steamboxes be for?

 
I wonder who Valve thinks the audience is for a "steambox" or their SteamOS. I can see some people building a inexpensive pc running SteamOS to stream their gaming pc to their tv but outside of that I don't see the appeal. A $400 PS4 will play all the noteworthy indie games, all the noteworthy third party games, and it has 1st party exclusives plus console exclusives games like Metal Gear Solid, Final Fantasy, Kingdom Hearts, etc. Who exactly will these steamboxes be for?
As someone with a gaming PC in a room other than my living room, I'm interested in a Steambox with SteamOS in order to easily play my Steam games in the living room with a controller. And the amount of indie games on PC that aren't on consoles or Vita (not to mention the ones that were on and will be on PC only for a while before being ported) is huge, not to mention I'd like to have the ability to play them on both the PC with m+kb or on the TV with a controller.

And with Steam sales being so cheap, it would be nice to be able to buy the non-indie stuff that I would want to play with a controller, and then be able to play it in the living room easily instead of buying it on consoles for a higher price.

 
A $400 PS4 will play all the noteworthy indie games, all the noteworthy third party games, and it has 1st party exclusives plus console exclusives games like Metal Gear Solid, Final Fantasy, Kingdom Hearts, etc. Who exactly will these steamboxes be for?
There is an audience for the SteamOS, and possibly even the Steamboxes that will be designed and produced. That audience simply isn't going to be the same audience that might be interested in buying a home video game console.

For someone who wants to transition their PC out of the office and into the living room, the SteamOS makes a lot of sense. Ditto for someone who wants to stream content from their office PC to the living room. And those consumers will have plenty of options. They can buy a pre-built Steambox, or build their own for less.

For someone who wants high-quality video games on a stable system that you don't have to maintain yourself, a console like the PS4 or XBox One is a much more obvious choice. Those systems are subsidized, and will always be able to beat out a regular PC when it comes to balancing price and performance.

Ultimately, SteamOS is for the same crowd that currently uses Steam...PC gamers. Anyone expecting the Steambox to be a new competing hardware console was deluding themselves.

 
Valve doesn't want you to stream Windows games. They want that to just be a stopgap measure. But I'm wondering if it will actually end up becoming it's own gaming platform, or if the only thing it will get used for is streaming. In which case they could have just created a simple $100 or so streaming box and called it a day.

As far as deluding ourselves, they are clearly trying to make this a gaming platform to compete with Windows. Now maybe THEY are the ones deluding themselves.

 
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Valve doesn't want you to stream Windows games. They want that to just be a stopgap measure. But I'm wondering if it will actually end up becoming it's own gaming platform, or if the only thing it will get used for is streaming. In which case they could have just created a simple $100 or so streaming box and called it a day.
Well after today's announcements, it does look like there could be both streaming boxes for people that only want that and more high-end boxes for people who want to run the games directly on the Steambox. Seems like they are preparing for it to do both of those things.

 
As far as deluding ourselves, they are clearly trying to make this a gaming platform to compete with Windows. Now maybe THEY are the ones deluding themselves.
I don't see how. Windows is a terrible, bloated platform for PC gaming. Almost any other operating system would be better in terms of performance, affordability, storefront, you name it. Not to mention the fact that Valve already succeeded in taking the PC gaming market out of Microsoft's hands. As far as positioning the SteamOS as a rival to Windows, I'd say Valve has a very good chance at success.

The licensing subsidized-nature of the console video game market provides a significant cost-value advantage to home consoles. You can squeeze way more features and performance out of their fixed-spec devices, and sell them at a lower price. That's why desktop PCs have always been more expensive, even when taking boxes like the NeoGeo and PS3 into account. But that doesn't mean that the market for desktop PCs is just going to disappear. The market for consoles might be bigger, but the market for desktop PCs is more established and stable. And there will always be a segment of the market that finds value in building their own boxes.

 
I am all for an alternative to Windows, actually. It wasn't what I was expecting them to announce, but I hope they succeed. Heck if it just gets Spelunky with Daily Challenge intact, I will be getting SteamOS on *something*. :)

 
I wonder who Valve thinks the audience is for a "steambox" or their SteamOS. I can see some people building a inexpensive pc running SteamOS to stream their gaming pc to their tv but outside of that I don't see the appeal. A $400 PS4 will play all the noteworthy indie games, all the noteworthy third party games, and it has 1st party exclusives plus console exclusives games like Metal Gear Solid, Final Fantasy, Kingdom Hearts, etc. Who exactly will these steamboxes be for?
Well the main appeal is steam sales. Why pay console prices for multiplatform games that go dirt cheap on Steam? If they put out a Steam console (i..e a small box, no keyboard/mouse, $500 or under) I could probably just live without console exclusives. But I'll never build a gaming PC as that's just too costly and too much hassle to get on the TV since I'd want to use it as my main office/work PC too.

And if it did well, maybe it would hasten console digital markets getting on a Steam pricing model.

If not, no skin off my nose. I'll just continue buying few games near launch, and selling every game after beating it to get game prices down to a level I can live with giving that gaming is down a bit on my hobby list/priorities these days.

 
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