In terms of hardware development, Valve still has their work cut out for them, but the studio's hardware division is nonetheless inspired. In a recent interview, Valve's Jeri Ellsworth shed some light on the state of affairs and revealed that Valve hopes to begin testing next year on various products. Obviously, we don't know anything about what kinds of products the hardware team has planned, but Valve will undoubtedly reveal more by then.
When asked what the team's current goal is, Ellsworth stated, "To make Steam games more fun to play in your living room."
That isn't a long-term goal, just the current one-year objective the development team has. One major hurdle for her and her colleagues involves coming up with a solution for properly integrating keyboard and mouse or controller, depending on the player's preferences. The recently released Big Picture Mode -- still in beta stages -- has been a major help, she noted.