GabeNewell-knife-ValvePolygon covered a recent talk today given by Valve’s Gabe Newell at the University of Texas, where he said Apple, not the big gaming console makers, is the biggest threat for the company’s upcoming Linux-based Steam Box hardware. Newell said he thought the biggest challenge for bringing the massively popular Steam service to the TV will be if “Apple moves on the living room before the PC industry sort of gets its act together.” He also said Apple could “shut out the open-source creativity” that Steam hopes to bring to the living room:

“The threat right now is that Apple has gained a huge amount of market share, and has a relatively obvious pathway towards entering the living room with their platform,” Newell 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?”

He continued:

“The biggest challenge, I don’t think is from the consoles,” Newell said. “I think the biggest challenge is that Apple moves on the living room before the PC industry sort of gets its act together.”