The three big game console makers — Xbox 360, PlayStation 3 and Wii — could see competition in the upcoming Steam Box from Valve. Gabe Newell, founder and CEO of Valve, explains the device is built around the company’s Steam service, which provides PC game publishers with a secure, turnkey solution for publishing, while offering gamers a central hub for buying thousands of titles.

Those games are most often offered at lower prices than can be found through the three big consoles.

“With an estimated 50 million users, Valve’s entry into the living room gaming market has the potential to be an extremely disruptive force in the gaming [market], with implications for the general entertainment market as well,” according to The Hollywood Reporter.

The device can also act as a home server, able to push media up to eight players on eight different screens.

“Valve has also ventured into selling movies, music and ebooks in the last year, so a move from the den and into the home entertainment space could presage an expansion of that marketplace for them as well,” adds THR. “With a gigantic user-base, and a long track record of well-placed ambition, Valve’s move into the living room promises to be once to watch.”