Don't get too excited about Valve's rumored Steam Box console just yet. The company has denied that it's currently developing a set-top box to support its Steam gaming platform.

Valve's Doug Lombardi says it's true that Valve employees were building custom PC hardware, but not for a new console. The computer making the rounds last week via a Valve developer's Twitter account was a test device for the company's Big Picture Mode, a new feature that will allow users to connect a Steam-enabled PC to their TVs.

While that's something like a set-top box, "it's a long way from Valve shipping any sort of hardware," Lombardi told Kotaku.

He refused to rule out the possibility that Valve may one day ship its own console, though.

Combined with Gabe Newell's previous commments that "we think [hardware is] important enough that if that's what we end up having to do, then that's what we end up having to do," that leaves the door open for Steam Box somewhere down the road.

Sure, maybe sometime after Half-Life 3 is ready.

[kotaku / image: IGN]

Netflix CEO Reed Hastings has reportedly been in talks with cable providers about adding Netflix streaming to their set-top boxes as an additional on-demand option.

Cable companies haven't always been on the best terms with Netflix, seeing it as a threat to their business, but Reuters reports that at least one company is considering experimenting with Netflix by the end of the year.

Hastings has been comparing Netflix to premium cable network HBO in recent investor meetings, saying he sees cable as "a natural direction" for the company.

"Many (cable service providers) would like to have a competitor to HBO, and they would bid us off of HBO," he told investors last week.

If Netflix were to add a cable tv service, the company would have to rework its deals with movie studios and other content providers. Current agreements don't allow the company to deliver movies via cable boxes.

Netflix hasn't yet commented on the rumored partnership talks.

[reuters]

Valve may be working on a set-top gaming console to support its popular Steam gaming service, The Verge reports.

The company is rumored to be at work on hardware and software specs for the "Steam Box," which may be manufactured by "a variety of partners." The device was apparently demonstrated during exclusive meetings at CES.

The specs of the Steam Box reportedly include a Core i7 CPU, 8GB of RAM, and an NVIDIA GPU. Back in November, a Valve employee who is reportedly on the Steam Box team tweeted a photo of a gaming PC he built with similar specs. That photo (above) is the closest thing so far to an image of the console.

Even more interesting, Alienware's X51 gaming PC may have been designed using an early spec of the Steam Box, and may be able to run Valve's Steam Box software when it's released.

The device may also have a control pad featuring swappable components, so you can reconfigure the buttons to suit the game you're playing. It may also feature biometric feedback, either through the controller or an accompanying bracelet. Valve filed a patent for such a controller in 2009.

Although Valve hasn't officially confirmed it's working on a console, co-founder Gabe Newell recently told Penny Arcade, "We'd rather hardware people that are good at manufacturing and distributing hardware do [hardware]. We think it's important enough that if that's what we end up having to do, then that's what we end up having to do."

[verge]