Huh, interesting. With all the rumors about Valve's Steam Box floating around, I was kind of picturing a Mini-ITX-sized living room PC. Valve may be shooting for a smaller form factor, though. Xi3 has put out an announcement saying its Modular Computer chassis is playing host to "a development stage system optimized for computer gameplay on large high-definition television monitors." According to the press release, the system is designed specifically to run Steam in Big Picture mode for "residential and LAN party computer gaming on larger high-def screens."
As it turns out, the Xi3 Modular Computer was announced a couple of years ago, and it's small—really small. Xi3 describes the thing as "grapefruit-sized," and it's not lying:
This is a slick-looking machine, no doubt about it, but I'm left wondering just how much GPU horsepower one can cram in there. I doubt there's room for a discrete graphics chip or a particularly powerful CPU or APU, which may restrict one to pared-down integrated graphics. I suppose that's enough to run Team Fortress 2, though. (Thanks to TR reader James for the heads up.)