Doug Lombardi, Head of Marketing at Valve has revealed that Valve is no longer working with computer manufacturer Xi3 on its 'Piston' Steam box. Lombardi did, however, say that Valve had "some dealings with Xi3 last year", but went on to say that Valve "currently has no involvement with any [Xi3] product". Valve has announced development of its own Steam box, which it claims will be priced competively against to next-generation consoles, but also said there were possibilities of other companies producing their own Steam boxes.
Valve cutting its ties with Xi3 would appear strange, especially considering that during this year's CES in January, both Xi3 and Valve shared the success of the 'Piston' Steam box. Xi3 also claimed that Valve had made an investment in the company itself. The Xi3 'Piston' will still be compatible with Valve's Steam digital distribution platform, including its 'Big Picture Mode' designed for use with TVs, however it will not boast any special Valve affiliation.
Source: Tom's Hardware