Valve founder and all-round awesome dude, Gabe Newell, recently had a talk at the University of Texas' LBJ School of Public Affairs, where he talked about Valve's biggest competitor. Newell talked about the upcoming battlefield, which is in our living rooms, where he said:

I think that there's a scenario where we see sort of a dumbed down living room platform emerging - I think Apple rolls the console guys really easily. The question is can we make enough progress in the PC space to establish ourselves there, and also figure out better ways of addressing mobile before Apple takes over the living room?

Newell also expects there to be products that will turn up shortly that will help bridge the gap between the living room and the PC, where Valve will be happy to join the club. Newell fears that Apple might beat them to it, which will hurt the PC to living room transition.