Online sources had claimed that Valve was developing their own gaming console that would run the games available on their Steam store.
The company has denied these rumors. Valve marketing director Doug Lombardi spoke about the reports:
We’re prepping the Steam Big Picture Mode UI and getting ready to ship that, so we’re building boxes to test that on. We’re also doing a bunch of different experiments with biometric feedback and stuff like that, which we’ve talked about a fair amount. All of that is stuff that we’re working on, but it’s a long way from Valve shipping any sort of hardware.
Valve however did not deny that they are not planning to launch something like a gaming console in the future. They just said that nothing is under development right now that could be showcased in the near future.
So it is still very much possible that the company could launch a gaming console in the future that could connect to a television set and run PC games!