The Steam Controller in action
Valve have uploaded some great footage of their new controller in action. They're going to respond to community requests and upload more videos quite frequently, showing the controller with different types of games.
I'm really glad they did this, I'm cautiously optimistic about what they're trying to do with the Steam OS, machine and box. It's a big leap to make, but I do feel they're one of the few companies out there who could do it right.
Take look at the video yourself, it's pretty short, but the handling looks good. If they haven't messed with the latency of the videos at all, then I'm very impressed by how responsive the hardware is. I wasn't mad about how it handled something like Civilization V; it's a tough game to approach in terms of controller and UI, but they're whole USP has been that they have this kind of game licked.
Update: The video is now in HD.