As we’ve been working on bringing Steam to the living room, we’ve come to the conclusion that the environment best suited to delivering value to customers is an operating system built around Steam itself. SteamOS combines the rock-solid architecture of Linux with a gaming experience built for the big screen. It will be available soon as a free stand-alone operating system for living room machines.
Valve appears to be championing this system on a free-standing linux console, flaunting the ability to mod and share games. Perhaps Valve will have more success than Microsoft?
Every cloud has a silver lining; you should have sold it, and bought titanium.