Steam's Big Picture mode was released out of beta recently, paving the way to their new "Steam box" console, which will compete with next gen consoles.  Before the "steam box" was just rumors, but Gabe Newell recently confirmed that they were true in an interview with Jason Schreier, from Kotaku!  Valve is hoping to release a gaming pc that will boot up directly to steam, which will, of course, be in Big Picture mode.

Gabe has a bit to say on the situation, including that other companies will definitely be releasing similar products soon.  He also says the hardware will be much more controlled, as apposed to a normal pc.

You can read more of what he says in the interview here:
http://kotaku.com/5966860/gabe-newell-living-room-pcs-will-compete-with-next+gen-consoles

this will be the first ever console, I will actually buy in a long time lol!!!

best part is that you already have games to play on the console! (and so you don't have to worry about waiting on decent launch titles/decent games to come out)

I haven't heard of this until now. Have they discontinued this already?

I don't think they discontinued it, but I haven't heard too much about it!