Valve Said to be Working on Secret "Steam Box" Console

Numerous reports are out this week that Valve is working on a "Steam Box" Console.  This could shake up the console world severely, as Steam relies on digital distribution for its games where the current gen consoles still use copies of physical media.  The Steam model has revolutionized PC gaming, and could prove to be a portent for the future of console gaming as well.

I love Steam even though I'm not a huge gamer in general.  I think the Steam sales and user interface are great for driving sales and making playing with friends very easy.  I see no reason why this model wouldn't succeed for console games as well.  It could even solve the "used game problem" that current development and distribution companies seem hell-bent on solving.
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On top of this news, I saw these photos floating around of the supposed "Steam Box"

Turns out these are just pics of a fan-made PC case-mod... which was a triumph.  But I could see a Steam console having some sweet design, or even interchangeable shells.



So keep this story in mind as the current gen consoles reach the end of their runs.  Could be there's a new champ by the time the next gen gets released.