Valve announces SteamOS, a new platform for playing PC games on TVs
PC game service operator and game development studio Valve announced  SteamOS this afternoon, finally formalizing a PC gaming hardware project  known as "Steambox" we've heard dribs and drabs  about over the past few years. The OS will function on "any living room  machine," and it also streams games from your Mac and PC, as well as  offering media playback functionality. The OS seems to be  multifunctional in this aspect, both acting as an operating system for  living room-based machines directly connected to televisions, and  offering streaming capability from computers outside the living room.  "Just turn on your existing computer and run Steam as you always have -  then your SteamOS machine can stream those games over your home network  straight to your TV," the announcement page says. The OS is free and  built on Linux; it will be available "soon."
Valve says it's "achieved significant performance increases in  graphics processing, and we're now targeting audio performance and  reductions in input latency at the operating system level," with regards  to streaming capability. "Game developers are already taking advantage  of these gains as they target SteamOS for their new releases." No  specific developers are named, but a job posting from Crytek points at one suspect.
The project is intended to compete with traditional game consoles, and it seemingly evolves Steam's "Big Picture Mode"  to that end (which isn't to say that service is going away). Valve  specifically lists four new features as the pillars of SteamOS: in-home  streaming, family sharing, music / TV / movies, and family options.  Let's dive into those after the break. 
Original.. http://www.engadget.com/2013/09/23/valve-steambox-official/