Valve signals hardware is the future of distribution

Gabe Newell, the co-founder and managing director at PC gaming powerhouse Valve Software, recently spoke with Kotaku about the shifting landscape of games distribution and his company’s move into the living room.

Ten years ago Valve established Steam as a primary distribution channel for its titles and add-on content. Just this month they’ve released Big Picture, establishing a foothold in the living room by essentially porting the Valve experience to the TV. With a new controller and interface, user’s can play games, stream content, and access Steam through Big Picture’s front-end.

Speaking to Kotaku, Newell suggested that Valve and other competitors will release custom branded hardware solutions for the living room within the next year. User’s would be able to buy an official Valve gaming console (likely to be a lightweight PC or Linux device) and plug it into their TV. While this may seem surprising to many who have suggested that console gaming is in decline, Newell let slip the compelling hook for game’s developers.

“Well certainly our hardware will be a very controlled environment… If you want more flexibility, you can always buy a more general purpose PC. For people who want a more turnkey solution, that’s what some people are really gonna want for their living room.”

As content has dematerialized and gotten loose and slippery, content houses have been trying to figure out how to put the genie back in the bottle and retain control over their IP. Hardware offers such a controlled environment and, thanks in large part to Apple, hardware manufacturing is easier than it’s ever been. It wouldn’t be too surprising if, a few years down the road, Valve decides to lock down distribution completely by shunting all its users onto a low-priced piece of branded hardware. Plug it into your TV, launch Steam, and pull content direct from the Valve server farm.

Now imagine if they release Half Life 3 and you can only buy it through their hardware…

[Related: Hardware, the ugly stepchild of Venture Capital, is having a glamor moment]

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