“The threat right now is that Apple has gained a huge amount of market share, and has a relatively obvious pathway towards entering the living room with their platform,” [Valve Software CEO Gabe] Newell said. “I think that there’s a scenario where we see sort of a dumbed down living room platform emerging — I think Apple rolls the console guys really easily. The question is can we make enough progress in the PC space to establish ourselves there, and also figure out better ways of addressing mobile before Apple takes over the living room?”

Valve is working on hardware devices to complement their Steam game service, which is available for the Mac. The device will run on Linux and will enable Steam gamers to play games from their TV rather than having to use a Mac or PC.