One step up in the ladder is a PC in a console form factor at a console price point, this is where Valve's Steam Box comes into the picture as an affordable living-room based gaming box. Newell described the "best" scenario as a traditional PC purchase solely for living room use, he explains the sky is the limit in this scenario as PCs scale very well depending on the customer's needs.
Newell's 'best' scenario is essentially a traditional PC purchased just for living room use. "PCs have always scaled really well - if a customer wants more 3D performance they can get it. If they want more storage for video the can get it. So the sky is the limit - if you want a $4000 living room box I'm sure there are lots of PC vendors who are going to send that to you," he said.
Source: at CVG