With all the news regarding the new consoles, I can't help but think this is going to be a massive mistake.

Both PS4 and 360 are likely looking to move into the rts genre with their tablet controls, and will be able to handle MMOs as well, remember that the tablets will be able to stream from the box, meaning that you can just play wow on an ipad like device at home.

As much as I love the Gaben, I really feel like he should've partnered with Sony here. Trying to enter this market is going to be hectic, especially with the spending power both MS and Sony have.

More details need to come out. It's going to be Linux based? I'm not a computer person, but is that going to be a barrier for the library of games? Is Valve going to be selling it at a loss? How many other partners are there?

It could be seen as a good idea, if it's not really Valve trying to "take over" the console business, but really steal a bit of share of it. Extend the PC to the living room, rather than try to take on Sony and MS head on. Another way to look at it is Valve just releasing another computer.

So the big question is: WHAT IS VALVE'S BUSINESS MODEL in regards to the console. And how much do they need to sell to break even? I'm assuming they're going to be outsourcing production, so how does that affect it as well? Are they going to make money on licensing fees?

If it is just another PC, that has the advantage of Valve being able to play it slow with the Steam Box. You don't really have the issue of network effects and getting devs to make games for the Steam Box, as they already do by the fact  that they make the games for the PC already.

They're publicising it as a console, but it's really just a PC that people /know/ will play certain games, reducing the barrier to entry to being a PC. It's much less risk.

It won't be custom hardware, the custom software is mostly written already, PR seems free for Valve (anything he says gets everywhere), and ultimately they don't have to sell many units to recoup the cost of the project. They don't have to beat anyone.

People playing on a PC now won't have any incentive to move to consoles that they don't have already. Do you really think PS4 changes anything?

The only threat to Valve is the one facing the whole games industry: disinterest in the product they're making regardless of platform due to lack of quality or focus.

Valve's business model may really for there to be other manufacturers making various Steam boxes, catering to a diverse variety of needs, taking on the cost and risks, and doing the advertising.

What Valve is interested in expanding the customer base of PC gamers, which will ultimately result in more revenue via Steam.

So THE Steam Box isn't really important. It's really a matter of if PCs can be successfully sold to a more mainstream audience.

So basically it is like the Neo Geo

They should throw it on kickstarter and see what happens, prolly will go like 1000% over lol.

My main fear with the Steam Box is marketing.

I mean, how well known and trusted is Valve to the main stream market?
How is the product(s) going to be positioned? Is it a PC? Is it a console? If it's a PC, will people really get into their heads that Steam Box is THE product to buy for games? How do the features of the Steam Box compare to the other consoles?
How confused will consumers be if there are multiple Steam Boxes? Whereas Sony and Microsoft can focus all their money and effort on raising the brand awareness of their individual products, it seems like Valve and its partners(?) are going to need to raise awareness of, what I assume, is going to be an umbrella brand (Steam)?

And most importantly: Will the main stream consumer TRUST the Steam Box(s)?

Ya, Valve took Sony out to dinner, promised it a future full of dreams and wonder......and ended up leaving without so much as a goodbye.

Kickstarter has never raised anything close to the budget of an actual game, never mind a hardware project.

What about Ouya?