Its a mini pc. Either lower power limit or accept high temperatures. This looks tall enough for half decent cooling, but if it's hitting 100c it's not great. They sell you on mini pc with a smile and never mention the cooling trap.
It's a dumb device.. it was designed in a time cpu and gpu were the most expensive parts... now that isn't the case and dumbing down hardware doesn't make any sense. But it's too late the design is already made
Valve is preparing a new BIOS update for the Steam Machine to solve the issue of the emergency red LED light prematurely coming on. While the issue is not related to any hardware fault, it does seem to weaken one of Steam Machine's biggest selling points.