Valve developer Michael Abrash revealed on his own blog that the company is venturing into wearable computers. Currently, it is all just an experiment and I personally doubt that anything will actually come out of this for consumers in the near future. He clearly states that:
"To be clear, this is R&D – it doesn’t in any way involve a product at this point, and won’t for a long while, if ever – so please, no rumors about Steam glasses being announced at E3."So Valve will not be competing with Google's Project Glass even if it does come out around the end of the year as planned.