More details need to come out. It's going to be Linux based? I'm not a computer person, but is that going to be a barrier for the library of games? Is Valve going to be selling it at a loss? How many other partners are there?
It could be seen as a good idea, if it's not really Valve trying to "take over" the console business, but really steal a bit of share of it. Extend the PC to the living room, rather than try to take on Sony and MS head on. Another way to look at it is Valve just releasing another computer.
So the big question is: WHAT IS VALVE'S BUSINESS MODEL in regards to the console. And how much do they need to sell to break even? I'm assuming they're going to be outsourcing production, so how does that affect it as well? Are they going to make money on licensing fees?
If it is just another PC, that has the advantage of Valve being able to play it slow with the Steam Box. You don't really have the issue of network effects and getting devs to make games for the Steam Box, as they already do by the fact that they make the games for the PC already.
