It's not like Microsoft, Sony or Nintendo would ever allow a storefront to come to their console and take their revenue, it's more likely that Valve plans to get back into console-like hardware. Which is not really a surprise.

Make sense, especially if you can lock the PC market into your console. It's really the last gaming market with open competition as far as store fronts go

I can think of two things for now:

-Some form of cloud gaming in partnership and accessible from consoles, So something official, not some browser workaround (like Stadia on Xbox/etc).
-A second attempt at Steam Machines, Gabe did mentioned (in another interview) that he was not happy with the Steam Machines, but he wasn't very clear if the idea or the execution were wrong. Maybe this time they've learned their lessons.
This idea makes me very giddy, I must confess. What I'd like to see different this time is an official Steam Machine standard, as much as possible consistent in terms of OS/software and hardware. Not locked mind you, but something that a game developer could easily target.

The most likely is Half-Life: Alyx going to PSVR 2 which is why they're talking end-of-year for knowing a bit more.

Quoting: Liam DaweThe most likely is Half-Life: Alyx going to PSVR 2 which is why they're talking end-of-year for knowing a bit more.

After watching the video more carefully, indeed, I toned down my enthusiasm.
The intriguing quote that I posted initially is just taken from the article, but the actual question sounded different:

Quote- Will Steam be putting any games on consoles, or will it just stay on, ah, PC?
- You will get a better idea of that by the end of this year.

But...

"It won't be the answer you would expect."

Seriously, it's been a while since I lost hope in a new wave of Steam Machines, as much as I would like that. Liam must have nailed it. Valve seems focused on VR, now.