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This seems like Apple TV, pointless and has no reason exist.
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At the risk of sounding like a fanboy, Valve rarely did anything with the Steam platform that was pointless. They've come up with some pretty good ideas trough the years that competitors are finally catching up to.
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They would also lose any games that rely on DirectX or other proprietary tech. Which makes up a whole heap of the current Steam catalog.
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I doubt there is a plan or actual need to release the entire current catalog of Steam games on their hardware platform at first. They will probably start off with a few exclusives (Half-Life 3 being the main exclusive, I can almost guarantee that) and a good development kit. Given Steam's track record I think quite a few AAA devs might be interested.
We'll have to wait for exact details though. I'm pretty sure they thought about this long and hard already, though.