pezus said: There is not just one Steam Machine. There will be many options, all of them yet to be revealed (and the price certainly so). I can definitely see some of them being in the console price range, while others will be more expensive.
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The lowest spec on the prototypes is an i3 with a GTX 660 which should be roughly the same price as Sony/MS consoles. Maybe slightly more. I have seen a lot of build your own specs for $450-550 posted around the web. They could be cheaper if AMD had better driver support for linux/steamOS and you could use thier APUs.
For a livingroom build where all you need is 1080p gaming, the i5/GTX 760 is a very nice sweetspot. That is what I will buy or build, and it will be a few hundred more than the Sony/MS consoles, but so very much worth a few hundred bucks.
The i7/Titan prototype looks like it will be expensive, and complete overkill for a livingroom setup unless you have a 4k tv.