Harrison is certainly not wrong. Sony, Microsoft and Nintendo are big boys in the ring. You've got a swarm of tablets that are starting to look more like computers and each of those companies would slash each other's throats to raise their stock a few points. The Ouya is going to come out and even Amazon wants a piece of them to try and get an exclusive.
Basically, it's not an empty market and you need a pretty damned amazing product with a pretty impressive network of production with a LOT of capital to get into this.
Last estimate of Valve's net worth was between 5 and 6 billion as a company. Even with Sony's financial trouble, their market cap is still double that with large amounts of assets they still possess. MIcrosoft's is $224 billion. Hardware seriously can make or break a company.
Valve is going to need luck if they're honestly serious about competing.
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