Overview of Valve's SteamMachines specs
steamcommunity.com
steamcommunity.com
A niche, but a decently-sized one.
And depending on the living room - it may well be worthed. Having multi-TV screen gaming setup with audiophile sound can be very lucrative niche market.
Be I could definitely see the fat headless home pc streaming to the devices needing it in the next few years - we could call it home mainframe.
http://www.tomshardware.com/news/amd-mantle-api-xbox-one-pla...
The situation is actually quite similar to the Android world. Google makes the platform and others make the phones, Valve also provides a platform and lets others make the steam machines.
And I think that i3/660 is fairly well balanced entry level futureproof for 2 years 1080p machine.
Remember that they probably have a number of audiences they are considering targeting. Off the top of my head, there is at least three core groups. The high media consumption family who all game and often game together is currently in vogue for console marketing. The 'hardcore' gamer crowd who play high demand FPSes and MMOs, who used to be the traditional market segment for Steam. Then there's the casual gamer who plays lighter games, but may well play a lot more games than the 'hardcore' gamers. The last one I can think of would be the family which buys consoles for the kids, and the parents have yet to be converted and still need to be properly sold on all the interactive TV features. I doubt that only 8 samples at a given level would give any meaningful data once statistical variation was factored in.
The only conclusion from that which makes any sense is that Valve are going after a single demographic at the start, most likely heavy gamers. But I am concerned that this will both cause key issues to be overlooked, and that this will make expanding outwards into other segments very hard. Although they will have some big name assistance with getting into a wider market, just look at Apple versus Android. Despite the leaps and bounds android has come on, iPhones and iPads are still viewed as less geeky and easier to use.
On the other hand, however, perhaps Valve are intending just that result. After all, the controller will often need custom mappings to be selected, so perhaps that is a good market for them. If I were a living room electronics manufacturer, however, I'd really want ease of use to be at the core of my products. I wouldn't want to integrate with my premium TVs something that could be called "geeky".
I also think they will be going for the heavy gamer at first. Because that is mostly their current market already. As they expand they will have several issues to break into other segments, namely regarding brand recognition (who will know what a SteamMachine is when it's built but 10 different manufacturers) and what the differences in positioning are ? It reminds me a lot of the 3DO situation 20 years ago when you had a single console standard/OS but about 4-5 manufacturers and there was a real lack of strategy as a platform. And pricing was, at that time, a big issue as well for the launch window.
Hardware upgrades on the way are going to make this a real headache down the road, but I'm sure they are already thinking on how to address this.
We'll see what their plan are very soon.
edit: Tech Report says 323 watts for whole system in their Titan review, so it's certainly feasible.