> Most Steam games require keyboard and mouse. I don't see how that can work in the living room
If the issue is "how do you get control devices that work for that use case", wireless keyboards and mice with suitable range for living room use exist (I've seen them mostly used in large conference rooms, but the requirements aren't very different.)
If the issue is "how do you use control devices in that environment since they call for surfaces", lapdesks, coffee tables, etc., are frequently found in living rooms. If people want to play their existing keyboard-and-mouse focussed Steam games in their living rooms, its not hard to see how they can.
But I think that -- as with other consoles -- the games that are playable with more traditional "gaming controllers" will be more popular for the livingroom role than keyboard-and-mouse driven games. But plenty of PC games have, for years, been very similar to console games and support game controllers (even though they usually had KB/mouse support since that's what you could count on users having on the PC platform), so I don't think this is going to be much of an issue.
You'd be surprised at how many don't. I have a little Windows box connected to my TV right now, with a $10 Xbox controller wireless receiver. Steam runs in Big Picture mode, and I'd say that somewhere between a third and a half of my games play great with a controller. I've been doing most of my gaming that way lately, and it's a very nice experience.
As a male 20-something tech enthusiast that is friends with others of the same, I don't visit many living rooms which don't have a keyboard and mouse as permanent fixtures.
