It's pretty clear that Valve is going for the console userbase with Steam machines and Steam OS. Steam OS is basically a Linux distribution built around and optimized for gaming. The Steam machines are basically pre-built gaming machines designed to fit into your living room. They've also designed a controller that attempts to give you mouse level precision as opposed to imprecise analogue sticks.
Personally, I don't think they're going to sell very well. Console users don't really care about PC gaming at all, and PC gamers want their own custom rigs that they build themselves. Valve has made machines that seem to target a very small, very niche middleground.
One thing I suspect Valve will do is announce Half-Life 3 alongside one of their major hardware releases and have some sort of incentive to get you to buy it. For example, including HL3 free with a Steam machine, or maybe making it exclusive to Steam OS.
There's a lot that could happen in the next few years. Valve has built up a business model that prints boatloads of money and has created an extremely loyal userbase. Do you think they'll be able to successfully break into the hardware market, or will it be a failure?
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