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I think designing a true Steam dedicated console is a huge challenge in itself, because of the sheer library of games offered through Steam. If the console itself were to run every game offered it would have to be immensely powerful, or each game would have to be custom tailored to run at the specs built in. Would Valve do this? Or make it a requirement for every developer who submits a game to publish via Steam? The other option would be to make it a dedicated streaming device, which brings up the very same issues people have concerning Gaikai.