In wake of Half Life 2 winning game of the decade at the VGAs last night, Gabe Newell gave an interview which finally confirmed the oft rumored plans for a 'Steambox' which will hopefully be due out next year. More details.
Not surprised. Given the whole steam Linux thing, they'll also have a base for something (possibly) open source, but it can be cheaper with no windows licensing fees either if they roll their own "steam" distro to run on it, as they'd only really have to recover the hardware costs on a sale. Could even be a loss leader, given the nature of the steam store.