Valve's Gabe Newell had previously gone on the record to share the company's interest in the living-room PC market, and CES 2013 seems like as good of time as any to show off. In a press release, Xi3Corporation announced that it has "a development stage system optimized for computer gameplay on large high-definition television monitors" which is being shown at its booth as well as Valve's.
The specifications haven't been disclosed yet, but the system will use the Xi3 Modular Computer chassis, shown above. In Xi3's own words, it's about the size of a grapefruit. This is being designed with Steam and the service's Big Picture mode in mind "for residential and LAN party computer gaming" on big screens.
Interestingly, Xi3 also announced that it has received an investment from Valve. Given the specific wording about this being a "development stage computer game system," there's probably plenty more where that came from. I'm extremely curious to see how Valve phrases this deal and what the branding looks like.