The "Steam Box" Rumor

I honestly don't know what to make of this:

Exclusive: Valve said to be working on 'Steam Box' gaming console with partners, could announce at GDC (by Joshua Topolsky at theverge.com)

Here's the gist:

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. 

On the hardware:

Apparently meetings were held during CES to demo a hand-built version of the device to potential partners. We're told that the basic specs of the Steam Box include a Core i7 CPU, 8GB of RAM, and an NVIDIA GPU. The devices will be able to run any standard PC titles, and will also allow for rival gaming services (like EA's Origin) to be loaded up. 

Part of the goal of establishing a baseline for hardware, we're told, is that it will give developers a clear lifecycle for their products, with changes possibly coming every three to four years. Additionally, there won't be a required devkit, and there will be no licensing fees to create software for the platform.

What it might mean:

Gaming consoles -- and the forthcoming Apple TV product line -- are closed platforms. The GabeCube would be something else entirely: a PC-grade, upgradable hardware layout with a console form factor, designed for the living room. Only an internet connection and a (free) Steam account required to play PC games. A PC-grade OS (wouldn't Windows be required for DirectX?), with PC-grade media and internet functionality. Most importantly: a baseline hardware and driver standard for the development of PC games. 

What it doesn't mean:

That any of this is real. I am enormously skeptical that even Valve has the money to subsidize the production costs of such a system. And seriously, how the hell would you get OEM Windows on the thing?