Seattle Times:

[Gabe] Newell expects Apple to disrupt the living room platform with a new product that will challenge consoles, although he doesn’t have any particular knowledge of that new product.“I suspect Apple will launch a living room product that redefines people’s expectations really strongly and the notion of a separate console platform will disappear,” he said.

Newell is the head of Valve Software, makers of Half-Life 2, Portal and creators of the popular Steam game service, which finally came to Mac OS X last year.

Newell also called the iOS App Store a closed platform, and called closed platforms “the wrong philosophical approach.” He defended Valve’s own Steam product, noting that developers can use its tools and services and sell their games elsewhere without having to pay Valve.