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DanneSandin said:

A PC played with the TV in the same style as a console. Happy? :P

Yup, it's a PC in that case so Pezus would be right. But I think what Valve is intending on doing is making a PC with a set of certified and dedicated controllers and inputs, as well as a form of licensing out of the box for Steam games, with the possibility of other PC functions as a secondary measure from there on out. And with that description you would be right, in that it would be a PC-console hybrid of sorts like we've never seen before.

Not sure though. In essence it would be a uber-console as it would have all the things a console has, but it would be HW expandable just like a PC is.