Awkward ... In a statement to Eurogamer, Valve has revealed it is no longer doing business with Xi3. Valve's marketing head head Doug Lombardi stated, "Valve began some exploratory work with Xi3 last year, but currently has no involvement in any product of theirs." Valve has announced it is working on its own hardware PC project, which the media has called a 'Steam Box'. Valve has offered little information on the hardware itself, however, saying only that it plans to have Linux as its operating system and that prototypes of the hardware could be released to a few members of the public sometime this summer.

It had been believed that Valve had backed the grapefruit-sized computer ahead of the release of its own Steam Box, but this appears to be false. Valve's Doug Lombardi told Eurogamer that Valve had some dealings with Xi3 Corporation, the company behind the Piston, but not any more.

"Valve began some exploratory work with Xi3 last year, but currently has no involvement in any product of theirs," he said.

Eurogamer contacted Xi3 yesterday after it was revealed the Piston would cost - at a minimum - $1000, and launch this Christmas. A UK price or delivery details are still to be announced.

Valve distanced itself from Xi3 PISTON gaming PC