Valve is developing a 
video game console, which industry journalists are tentatively calling the "Steam Box". It would be dedicated to running Steam to allow players to launch games, media, and other functions that the client already provides. The unit, as provided by Valve, is expected to be tightly hardware controlled, similar in manner to other video game consoles.
[110] The software side is expected to remain open; for example, the unit is expected to ship with a Linux operating system, but the user will be able to install Microsoft Windows if they want to.
[111] Valve has not yet set an anticipated release date, but does not expect the unit to be available within 2013.
[112] The company is anticipating producing a limited number of prototype units to be distributed to customers sometime within the second quarter of 2013 "to gauge their reactions", according to Newell.
[113]
Newell explained that Valve's strategy is to develop a single hardware unit themselves as the default model, internally named "Bigfoot", but work with other computer manufacturers who want to offer the same user experience but with different hardware configurations not offered by Valve's model; for example, Valve does not expect to include an optical drive due to size and cost, but this can be an option offered by another tech partner.
[111] He also envisions the software to enable 
screencast capabilities, allowing the single box to work with any monitor or television within the home.
[111] Newell stated they would also be likely developing controllers for the unit that integrate 
biometric data from the player and options for 
gaze tracking, finding that the involuntary responses from the player are more useful than other forms of player input like 
motion control.
[111] Newell also explained that in addition to the home unit, they are considering the mobile device market, specifically considering laptops and tablets, with their own hardware nicknamed "Littlefoot".
[111]
At the 2013 
Consumer Electronics Show, 
modular computer hardware company Xi3 Corporation introduced a prototype modular PC, codenamed "Piston". This unit is one of several possible designs that Valve is looking as the default hardware model for the Steam Box, and is specifically designed to run Steam on Linux and support Big Picture mode.
[114] The unit is based on Xi3's "performance level" X7A model, which presently retails for about $1000, is slightly larger than a human hand, and contains various I/O ports to connect to power, video, and data signals.
[115] Xi3 began taking pre-orders for the Piston Console at the 2013 
South by Southwest Festival in March 2013, anticipating high levels of interest in the hardware, with plans to release the unit for general purchase by the end of 2013.
[116][117] Valve has clarified that though they did some initial exploratory work with Xi3, they have had no direct involvement with the Piston's specifications, and it is not necessarily representative of their final design for their Steam Box