It would be nice to see the rest of the specs, just for a real comparison. My guess is the rest of the system won't be quite up to par with the PS4/One, especially since the manufacturer, the retailer, AND Valve will be getting a cut of the sales. As far as retailers go, don't expect them to take the miniscule profit they do on console HW, since they won't be seeing any sales/profit after the initial purchase.
Of course, I don't see this doing very well. If it does okay, it will definitely be a very niche section of the market. The average console gamer isn't going to go for this since they will have probably already made their mind up to go Nintendo, Sony, or MS. Avid PC gamers will most likely have PCs that are at least on par with these specs. So really, they are aiming at console gamers that have no interest in what either the Big 3 are offering.
There are also two main things that I think are going to make this a hard sell. One, the controller looks atrocious, and I think it is really going to turn people off when they see it on the box. Especially those who are used to the PS3/PS4 and 360/One controllers. And two, your average consumer is going to be really confused in a year or two, when there are 3-4 different companies making different Steam Machines with different cases and specs. In the end, they'll most likely go with the cheaper, easier option of a console.
