Unconfirmed: Valve Building a "Steam Box" Gaming Machine

Considering the implications that such a rumored device could have on the future of PC gaming, I thought it was important to direct you over to The Verge for a source-supported report that Valve intends to debut a console-like "Steam Box" PC (that will apparently look something like this) at the Game Developers Conference in San Francisco. The event kicks off in a couple of days, so we should know if there's any validity to the report soon:
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.

Adding fuel to that fire is a rumor that the Alienware X51 may have been designed with an early spec of the system in mind, and will be retroactively upgradable to the software.

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.

We're hearing that a wide variety of USB peripherals will be compatible with the boxes, though it will likely ship with a proprietary controller. It's possible that the controller will even allow for swappable components, meaning that it can be reconfigured depending on the type of game you're playing. Think that sounds odd? Well Valve filed a patent for such a device last year.
I'll continue to build my own gaming PCs as long as it's a viable option, but I can certainly see the importance that such a device could have. Add a slick, fast-booting user interface to Steam's excellent service along with a wireless keyboard, mouse, and controller, and it'll stack the platform nicely against the console competition.