Valve's Big Picture is just one step in the Steam Box equation.

(Credit: Steam)

Way back in March, the Internet sort of exploded when it became apparent that Valve really was working on its own gaming hardware package.

Now, Gabe Newell himself has told Kotaku that Valve will create its own hardware and software solution that is designed to compete directly with next-gen consoles from Sony and Microsoft.

Kotaku interviewed Newell at the Video Game Awards in Culver City, Calif., over the weekend. Newell said that the consumer response to Big Picture had been better than expected, and that the next step was to get Steam Linux into alpha and ensure that Big Picture works on the platform.

Read more of "Gabe Newell says Steam Box is a go" at CNET Australia.