Gabe Newell recently gave a talk at the University of Texas' LBJ School of Public Affairs where he talked about Valve's biggest competitor.

Notes on Newell's talk comes from Polygon where he had a lot to say about the coming battle over the living room. 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?"

Newell also said that he expects a lot of products to show up soon that will bridge the gap between the living room and the PC, but Valve will be happy to join the fray. His biggest fear, however, is that Apple will beat them to the punch, which will hurt the PC to living room transition in the long run.