The Promise and Potential Pitfalls of Valve's Steam Box

CES 2013 was all abuzz this year over the Steam Box, and for good reason: the opportunity to have a seamless interface that finally takes advantage of Steam's Big Picture platform is enough to pique the interest of even the stalwarts of PC gaming. Add to that a small and sleek form factor that made a splash at last year's event, and it's difficult not to hop on the nearest waiting list.

But, it's still unclear what Valve's own and third-party Steam Box incarnations will look like, how they will run, and (perhaps most importantly) what they will cost. Still, Valve's Gabe Newell has offered some salient points amidst the chatter and rumors, so we can piece together a more stable picture.

Here's the breakdown of what to expect with the Steam Box, what features are worth their hype, and how it risks leaving some of its biggest promises unfulfilled.

More than Just a Box

Out of all of the buzzy features Newell and company teased throughout CES, perhaps the one that is most intriguing is that the Steam Box isn't just a single device. Rather, it's a Linux-based OS all its own, powering a range of tiered gaming computers, from low-cost streaming devices to high-end rigs. While Valve hasn't explicitly said, it seems likely that each will be required to meet a minimum level performance and boot directly into the Steam Box OS right out of the box — a feat currently impossible with Windows and Microsoft's licensing requirements.

Other companies are also getting in on the action already, most notably Xi3's Piston console, a CES darling that promoted its function on the Steam platform with backing from Valve. While Xi3 reps were cautious about promoting the Piston as an out and out Steam Box, there's a possibility that the Piston is a landmark of the first wave of Steam Boxes. But there are also other devices seemingly waiting in the wings, some of which that may already be on the market. Take the Alienware X51, for example. Last year, we reported that the Dell-owned company's compact PC was originally intended to be a Steam Box device, and when Valve formally launches Steam Box, is likely to be offered in Linux configurations to be compatible.

Steam Games on Any Screen

Another thrill-inducing feature that has many excited about the Steam Box platform is its purported versatility. Newell promised that the Steam Box wouldn't behave as just a console version of Steam with the added benefit of a shop. Instead, it's touted as an all-in-one streaming, gaming, and browsing server that travels to multiple gaming displays. Eventually, Newell hints that the Steam Box will be able to juggle up to eight different games simultaneously. As Nvidia demonstrated with Project Shield, Valve is experimenting with remote access to Steam through Android clients custom-tailored for mobile devices, suggesting that the Steam Box platform could bring full-fledged PC titles to tablets and smartphones as well.

If true, you have to give Valve points just for effort  — a totally open and flexible hardware option is a true step towards gaming of the future, and it shows that Valve is conscientiously steering the Steam Box towards an inclusive gaming experience that isn't tied to one method or hardware.

Making PC Gaming Mainstream

Cost and technical savvy, whether real or perceived, have always been a barrier between PC gaming and mainstream audiences. With a unified platform and cheap, easy to use hardware, Steam Box could be the key to bringing PC gaming to the masses. Of course, it'll be an uphill battle dependent on influencer adoption and an aggressive marketing effort, but it could move the needle. And while it may not be able to replicate the commercial success of PlayStation or Xbox products, Steam Box should make Microsoft and Sony sweat a little.

But for all of its promise, the Steam Box concept could have an equal share of drawbacks.

Keeping Costs Down without Sacrificing Performance

The core group of consumers that use Steam are, unsurprisingly, PC gamers who are particular about their systems' performance, and it's disconcerting that Valve is not making promises in the nuts and bolts department. Aside from rough estimates tiered in "Good," "Better," and "Best," it's unclear what minimum level of PC experience Valve hopes to offer. In order to keep costs low and accessible for a wider array of consumers, there's a chance that entry-level Steam Box devices will be weak and underpowered, turning off Valve's existing fanbase by forcing them to buy the top of the line or forget it entirely.

The Steam Box also could hit a snag when it comes down to the MSRP. If Xi3's Piston has slightly higher specs than the company's lower-market X3A (not a stretch, considering the folks at CES swore that the Piston had 1TB of memory, more than three times that of the X3A), then the price is already shaping up to be above the $500 line. Factor in the Piston's relation to the higher-market X7A, the price could creep up to almost $1000. That's a lot to shell out to play in your living room.

Gaining Developer Support

There's also the potential for a stalemate between Valve and developers due to the Steam Box's Linux-based OS. While Steam's catalog of Linux-compatible games has been slowly growing with the Steam for Linux beta, wider adoption could take time. To convince developers to offer their games on Linux, Valve needs to prove there's a significant audience for it. But in order to be successful, the Steam Box needs a robust library of titles released alongside their Windows and console equivalents. While Newell has largely explained away this problem by offering the possibility for users to install Windows OS onto the device, it's setting up for a chicken-or-egg scenario. If this issue isn't solved, customers may be frustrated with facing a work-around at unboxing.

Open-Source Competition and Brand Identity

Another big concern is oversaturation. 2013 is already shaping up to be the dawn of the open-source console, with the Ouya, Project Shield, and GameStick gaining traction for their Android-powered gaming systems. If the Steam Box — full of possible options that come in all shapes, sizes, specs, and prices — enters the market without a cohesive strategy it could confuse or intimidate consumers. In absence of a single device, Valve is accepting a mountain of risk by diluting the concept with products of varying performance from multiple vendors. To appeal to a more mainstream audience, Valve will need to take great strides toward educating consumers about the benefits, utility, and differences of each, or face the same pitfalls of traditional PC gaming.

While Valve has been dropping tidbits about the Steam Box concept for months, we're still no closer to knowing when we'll see the culmination of their work out in the open. With Valve panels planned for GDC in March, it's possible we could learn more then, but we'll just have to wait and see.

Scott Lowe contributed to this report.