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Yeah I think Valve has a miss with this one. If it were a single Steam Machine that was power and price competitive with PS4/XB1 they would be looking much stronger. Hell if they really wanted they could have simple upgrades over time like when the N64 released that easy to swap RAM pack.
Essentially what they should have made was a digital only console running SteamOS which boasts a larger library then the consoles with a few other benefits but instead we have the why not just build/buy a Windows PC, they're basically the same price and much better at everything anyway.