According to Kara Swisher at AllThingsD, Microsoft CEO Steve Ballmer has floated the idea. With Ballmer set to retire, he probably won't be there to see the project through (assuming, of course, that it makes it past the planning stages) but the very fact that it's being discussed suggests that Valve's Steam Machine project has caught Microsoft's attention.
via N4G: pc news feed http://n4g.com/news/1415948/is-microsoft-going-to-release-its-own-gaming-pc
via N4G: pc news feed http://n4g.com/news/1415948/is-microsoft-going-to-release-its-own-gaming-pc