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Engadget hears from Valve's Jeri Ellsworth about recently unveiled plans for Valve hardware. She talks of the team's one-year goal being "To make Steam games more fun to play in your living room," implying a controller of some sort. They talk about plans to get prototypes into the hands of gamers for beta testing "in the coming year," though there are no details on how this will work. She also refers to the wearable computer stuff they've discussed as a longer-term goal, saying it's probably two to five years off.
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