Recently there’s been chatter that Valve — the company behind the massively popular gaming service Steam — has been considering getting into the hardware business. Specifically, there have been rumors that the company has been toying with the idea of creating a proper set-top console which could potentially pose a threat to the Xbox 360 and PlayStation 3. Valve co-founder Gabe Newell even recently told Penny Arcade: "Well, if we have to sell hardware we will."
At a glance that would simply be interesting fodder for a gaming forum debate, but we’ve uncovered information that suggests that not only has Valve been secretly working on gaming hardware for the living room, but that the company is actively pursuing a strategy which would place Steam at the center of an open gaming universe that mirrors what Google has done with Android. Backing up that concept, in the same interview we quote above, Newell says that Valve doesn’t really want to do hardware on its own, stating, "We’d rather hardware people that are good at manufacturing and distributing hardware do [hardware]. We think it’s important enough that if that’s what we end up having to do, then that’s what we end up having to do."
That jibes pretty well with this rumored arrangement.
According to sources, the company has been working on a hardware spec and associated software which would make up the backbone of a "Steam Box." The actual devices may be made by a variety of partners, and the software would be readily available to any company that wants to get in the game.