Few details, but if he's talking about a box that's actually running games, I have to say I think they're going about this the wrong way. I think they should try solve the problem "How do we bring gaming from your already existing personal computer in another room, to your local devices (TVs, tablets)". Think "short range OnLive", creating a bridge between the computer and the display and sound output/controller input. You could even (for not so resource intensive games) run multiple instances on the SAME computer and have the I/O going to different devices, allowing separate-device multiplayer that way.
If they think they can 'take on MS and Sony' then sure the spoils from a stand-alone box would be greater, but I think growing the existing costumer base makes more sense than trying to build a new one. If you're spending a lot of money on steam, it's because you already have hardware to play games on. You don't need or necessarily WANT more hardware thingymajingies.