Or maybe Newell was suggesting that Valve plans to revive its Steam Machines program, getting behind a line of SteamOS-powered living room consoles once more. Given the quick market death of that effort, though, this is probably the least likely bit of speculation at the moment.
I think that Valve will, indeed, make a serious go at a console, running SteamOS (née, Linux), and I think the launch will coincide with the reveal of Half-Life Episode 3. I think they’ve been sitting on that pent-up demand to launch their console. I just think they had no idea they’d be sitting on it for 13 years and counting, now.
UPDATE: I just stumbled across a recent talk by Linus Torvalds, where he points out that he is already on record that Valve might be the one organization that could make “Linux on the desktop” a reality, because they will be obstinate about making a distribution that doesn’t make ABI-breaking package updates every few months. It looks like SteamOS is being updated — about once a year, but that sounds suspiciously as if plans to produce a proper SteamOS-based device has been discussed with him. Maybe that’s just wishful thinking. I’m very happy with my PS5, but I would love to see a Valve console come to market, for a lot of reasons.