So I recently saw an article from another Topic on this site that claimed Valve is now trying to dethrone Sony and MS consoles with their new home console, the Steam Machine. Now maybe I'm missing something, but from what I can tell, the Steam Machine is looking to be an extremely poor investment for Valve. Here's a few reasons why I think the whole thing is a terrible Idea.

Reason # 1: The console will, very likely, be all digital.

Knowing Valve, and the huge popularity they've generated over the years for PC gaming network, Steam, I find it extremely unlikely that their console will feature any form of physical media. The console will probably use Steam as well. Why is this bad? Well, let's take a look at just a few months ago when console gamers around the world heard that the XBone was going to emphasize digital only. It pretty errupted into a huge flood of bad media for MS, and has very likely done some permanent damage to the console's reputation for the simple fact that console gamers aren't ready for an all digital console, just yet. Digital only has seen success on the PC because it's an ease of access and inexpensive way for PC gamers (ie gamers that game primarily by themselves), to have all their games, services, etc. in one place without any hastle. Consoles have always been kindof different in that regard. Console gamers prefer physical media because it's something that they can hold onto, sell, trade, give to friends, etc. It makes gaming more social, as fewer console gamers are solo gamers. There's probably many other reasons behind this, but this is just my theory. Just take a look at the Ouya.

Reason # 2: It won't have any exclusives that help it stand out.

Every console needs a few flagship exclusives to help it stand out among the crowd. Exclusives are the bread and butter of any console. They're the titles that show off the console to it's fullest potential, while at the same time offering a unique experience that can't be found on the competition. Valve has never had this. Their titles have been found on a multitude of platforms, including the 2 that they're trying to go up against. Why would gamers spend the extra money on a brand new console to play a game that they'll be able to play on a system they already on, in this case the PC. Clearly Steam won't be leaving PC anytime soon, and it's where Valve's fanbase is. The console will have no titles that make it stand out, and the competition will very likely feature the same titles. Granted, Indies and mods might make up for this, but that just goes right back to the fact that PC already has that and then some. Sure, the console could focus on third party, but it just so happens we've seen a console try that, and it came back to bite that company in the ass pretty hard. No names mentioned.

Reason # 3: The console is appealing the wrong audience. 

Seeing as the system won't have any exclusives, the appeal is apparently coming from the face that the console will have customizable hardware and use Steam. Ok. What else do we know of that does these 2 things? Oh yeah. PC. What on earth makes Valve think that PC gamers are going to buy a console they've potentially invested thousands of dollars on maintaining decent PC rigs and a games library, and clearly want nothing to do with a console. Why would they waste their money when they already have everything the Steam machine could offer? No reason at all. It's obviously not going after console audience because if they wanted either of those things, they would've bought a gaming PC a long time ago. It's all pretty self expanatory.

Reason # 4: They'll be going up against already well established names. 

They're trying to compete with 3 of the biggest names in gaming: Nintendo, Playstation, and Xbox. These are platforms that have all been in the industry for a while now, and have made names for themselves. They all feature well known first party titles that make them unique, and are much more well known because of it. Services like PSN and XBL are far more popular than Steam, and the console who have already invested much of their time and money into these services and platforms will continue to do so, especially when the new guy on the block offers nothing they could possibly want to switch over for. 

In my opinion, Steam Machine will share the same fate as the Ouya. It will attempt to find a place in the industry, but will essentially fail. PC gamers won't buy it because they already have PC, and console gamers won't buy it because they already have console. It won't have mass appeal, and won't feature anything that isn't already out there. It's a potentially good blend of console and PC, but something like that simply isn't needed. What do you guys think. I'm sure there's many more reasons behind why the Steam Machine could be good/ bad, and these are just a few of mine. I'd love to hear your reasons.

I don't find it appealing in any way but we have to wait and see how this evolves!

Who knows, but "Reason # 4: They'll be going up against already well established names". The same happens with Sony & the first playstation, and they won the generation. Valve has a renown thanks to its digital platform.
Maybe, they are gonna destroy the competence :P

I could care less, I'd rather get a Wii u than this pile of steaming ....... Well you know lol

What could be a kick in the balls could be price: the 3DO suffered from the same fate !

Your typical console manufacturers can launch a console for break even(WiiU hopefully by now, XBone) or a loss (PS360, PS4) and make the money off the software !

....this wasn´t the the case with the 3DO, the hardware manufactuers (Panasonic and a few others) don´t get any money from the royalties so they had to make money of the hardware itself !
Couple that with "fairly expensive" innards....and you have a pretty non competetive price tag !

I´m assuming that this model will be used by the GabeCube of course (not necessarily though)

 True, but Sony's only real competition at the time was Nintendo, and they're main advantage was loads of third party support, something that Nintendo didn't have. Sony did what they still do to this day and marketed the console as the one with a multitude of games to play, while Nintendo just kindof marketed... well... Nintendo. Valve doesn't have that advantage, especially not in the console buisiness. Clearly that ball is Sony and MS's court and it won't be leaving anytime soon.

1. Valve is going after a market that is already used to all games being digital. There won't be any backlash this time as it is not removing features (trading, lending, etc) that people were used to having. Plus people will expect the cheap prices to continue, as opposed to console digital games that have always been more expensive then a physical copy.

2. Some exclusives will come (HL3?), PC exclusive games might get some extra optimization for the Steam hardware. Anyway it won't matter that much when you can get the same AAA games for $10 or less.

3. The average user on Steam doesn't have a very strong PC and doesn't spend thousands of dollars to keep up with the latest GPU's. The average user plays games on their home office PC or laptop. A simple box to put under the tv would be appealing to the average user.

4. Steam is a very well established name and already offers many of the features of psn and xbox live, for free.

That's not exactly true. Nintendo had tremendous third party support when Sony embarked on the Playstation adventure. They lost a lot of it when they decided to stick to cartridges for the N64.

Yeah, but If I'm not wrong, this is going to have almost the entire steam library? That's a lot of third party support, right?

And with a possible HL3, Portal 3 and some other exclusive or timed-exclusive this could be a success, I guess.

i don't think it is going to be an immediate run away hit but i think it could evolve into something amazing.

1) free OS. as things shift even further to internet services and advanced OS like windows is less and less needed. free (legally free) is a great number that will draw a lot of people and manufacturers in just like android did.

2) gaming optimized. yes, PC gamers use their rigs for more than just games but games is their top priority. and slim optimized OS that gives PC gamers more performance out of their expensive investments will be mighty tempting.

3) open. open platforms are better than closed platforms for innovation. as time marches on more and more developers could be drawn into this platform or other open platforms. i know a lot of developers are really upset with window's direction right now and are finding innovative ways to cut their dependance on MS. my company is investing over a billion dollars this year to eliminate MS dependencies from our platforms.