http://store.steampowered.com/livingroom/SteamOS/
http://arstechnica.com/gaming/2013/09/valve-announces-linux-based-steamos-as-basis-for-living-room-gaming/

Valve Software's SteamOS was announced today and here is a summary:

"Why a new OS? Valve says that with SteamOS, the company has "achieved significant performance increases in graphics processing, and we’re now targeting audio performance and reductions in input latency at the operating system level."

"The Linux-based platform will also be freely licensable to hardware manufacturers, allowing a wide number of "Steam Box" living room PCs to germinate. Newell has previously called Windows 8 a "catastrophe" for the gaming market, so it's not at all surprising that his company decided to move forward with a more open option under its direct control."

This also makes you wonder if they are going to license their improvements under a Free Software compatible license and release upstream to the Debian and Ubuntu repositories.

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