Nice, but I still question the reliability of iBuyPower after the two gaming rigs we bought from them died within 6 months of power supply and motherboard failure. Seems their quality isn't as good as other companies, or at least it was 3 years ago when I bought those.
Using "AMD CPU with a discrete GPU", they got balls, i bet its one of them athlons x4, but maybe undervolted or something, i reckon the athlon x4 at 3.0 Ghz on load will utilize 80 Watts, which gives good head room for the GPU, considering a good SFX PSU, can output 250-300W stably and efficiently.
According to The Verge it comes with a "multicore AMD CPU", R9 270, and Steam Controller all for just $499. You can't find a better deal on a (compact) gaming PC for this price anywhere. Even iBuyPower's own Revolt system starts higher and comes with only an APU. I didn't think Valve would be able to deliver on both the specs and price but this is could be a game changer.
They could make the nicest machine in the world, but with that Steam OS severely limiting the number of AAA titles you can play on it, and the lack of an optical drive creating a roadblock for an easy Windows installation for most console owners, well...good luck with that.