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E3 2014: $550 Alienware Steam Box Revealed, Dev Talks Competition With Xbox One, PS4

Includes Intel Core i3 processor, 4GB of RAM, 500GB hard drive, and a custom-built Nvidia GPU.

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This week at E3, Alienware announced that it will launch a new gaming PC called Alienware Alpha this holiday for $550. The rig was specifically designed around Valve's Steam Big Picture mode, and Alienware boasts that it's "the best way to experience your PC games in the living room."

The Alienware Alpha ships with Windows 8.1 and comes with an Xbox 360 controller. The base configuration includes an Intel Core i3 processor, 4GB of RAM, 500GB hard drive, built-in Wi-Fi, and a custom-built Nvidia GPU that the company is not talking about yet.

"The Steam library that you might already have, that'll be instantly available to you" -- Alienware representative Scott Radcliffe

The rig, which Alienware is calling more of a console than a PC, is going up against the Xbox One and PlayStation 4, both of which are now available for $399. So why would you choose an Alienware Alpha over the new consoles from Microsoft and Sony, which also offer exclusive games?

"I'd say because of the flexibility it provides. Because of our partnership with Steam, because of the great things that they're doing at Valve," Alienware marketing manager Scott Radcliffe told GameSpot today at E3. "We've got 3,000 titles that are going to be instantly available to you. The Steam library that you might already have, that'll be instantly available to you."

Right now, there are around 500 games on Steam with controller support, and this is growing every day, Radcliffe said.

He also pointed out that, unlike the Xbox One or PlayStation 4, the Alienware Alpha will not require a subscription fee to play online. Overall, Radcliffe contends that PC gamers are eager to play their games in the living room. "We feel that there's enough demand and enough desire for a lot of PC gamers to bring it into the living room like you see here," Radcliffe said.

Last month, Valve announced that the Steam Controller was delayed to 2015. Check back later today for more from GameSpot about the Alienware Alpha.

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