Meet Steam OS, a Gamer's Alternative to Windows 8

From DailyTech: Valve Corp. is set for a packed week as it's rumored to be rolling out three major announcements -- perhaps as part of the "good", "better", "best" program that quasi-CEO Gabe Newell referred to in a January interview.

The first announcement was made today as Valve unveiled Steam OS, a new custom Linux distribution, with a focus on gaming and Windows compatibility. Valve says that much of the recent Windows software and game catalog will be supported writing:

You can play all your Windows and Mac games on your SteamOS machine, too. Just turn on your existing computer and run Steam as you always have - then your SteamOS machine can stream those games over your home network straight to your TV!
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Access the full Steam catalog of over nearly 3000 games and desktop software titles via in-home streaming.

For the TV streaming Valve has partnered with Miracast, the WiFi coalition for wireless HDTV transmission.

Of course this is not the first Linux distribution to feature support for Windows apps. The long-standing WINE project has been used by many and provides sufficient compatibilty layering for many older PC game titles.

Initially, this compatibility sounds like it will be delivered via pushing video off your Windows PC to your Steam box (and from the Steam Box to the TV). But by next year Steam is promising "triple A" (premium) video game titles will be developed natively for Steam OS, removing the Windows crutches and allowing Steam OS to stand on its own.

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