The first photos are out of Valve's Steam Machine prototype, the customisable video game console design to bring the power of PCs to the living room. The prototype has been built to give manufacturers a reference design to work towards for their retail versions which are expected to debut at CES in January.
Valve says it has built its Steam Machines to prioritize cooling, with plastic dividing the innards into separate zones for the CPU (venting through the top), power supply (out the side) and the video card (out the back).
Full write-ups on the console from outlets that recently visited Valve's offices are up at Engadget, The Verge, IGN, Wired and The Washington Post, but the basic reaction is the same - there's potential here, but it's still VERY early days yet.
Speaking of Steam, a Reddit post containing photos of a leaked e-mail has let slip that the famous Steam sales for this season will run from November 27th-December 3rd, and from December 19th-January 2nd.