What this reminds me of is 3DO. http://en.wikipedia.org/wiki/3D0 for reference. I'm not sure if they'll be able to pull this off. The hardware will be too expensive, limiting the market share. Multiple vendors make for a muddle too. Also, why spend a bunch of money on a Valve box when you can just buy a cheaper off the shelf pc? It's not like I don't want to share being part of the glorious PC gaming master race, I'm just not sure Valve can pull this off.