http://www.joystiq.com/2013/02/07/gabe-newells-dice-keynote-steam-box-price-point-much-much-lo/
apparently dude is planning to price it at 100 bucks, and eventually make it free.
Newell said it would be a cheap addition to any TV, starting at $100 and eventually hitting $0. "The price point that's going to be hit is going to be much, much lower than things we've traditionally seen in living room devices. Better, it's basically a PC in the console form factor and at the console price point. There's nothing really magical about the hardware – this is the great thing about PC, is that it's been evolving so quickly."
and that said steambox is going to hinge more on in home streaming than cloud based gameplay, but he also doesnt write off cloud based gameplay also.
Steam, of course, was founded on principles of cloud gaming, so it couldn't be completely written off. "I think there's a place for cloud gaming, but much more as a feature for things like demos and spectation, and not as a core architecture for delivering value to consumers," Newell said.
should be interesting to see, if this thing is all the hype as people are hoping for, it could really shake things up.
i do love the last bit from this story though, of essentially if it fails, it'ill at least be a fun ride
"If we're wrong, at least it will be spectacularly entertaining as a failure," he said.
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