The Xbox 720 and PlayStation 4 will be fierce competitors themselves, but it looks like they will also have to worry about the Steam Box, which is about the get started with its testing.
According to a report from GamesIndustry on Wednesday, Valve head Gabe Newell said they are looking to provide some prototype Steam Boxes to customers in the not so distant future.
"We'll be giving out some prototypes to customers to gauge their reactions, I guess, in the next three to four months.
"It's the openness and flexibility of a PC done in a way that makes it work well in a living room.
"There are noise issues and heat issues, and being able to do that while still offering a powerful enough gaming experience is the challenge in building it," Newell said.
Newell then talked about how they are trying to evolve their controller and said consoles are now moving toward PCs.
"If you think of a game like 'Left For Dead' - which was trying to put you into a sort of horror movie - if you don't change the experience of what the player is actually feeling then it stops being a horror game.
"The nice thing is that all the consoles are moving in the direction of PCs. It's great to see that that's occurring," Newell said.
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