You may have seen the videos online of people that got their hands on something called Novec made by 3M, or even simple mineral water. The liquid does not conduct electricity, which in part means that you could dump it all over electronics, and they don’t get destroyed. What these people do is take out their computers guts, then fully submerge them into the liquid. While neat looking, it also does something else useful, it keeps the electronics cooled down.
Intel themselves are now trying to build off the idea and make official equipment that utilizes the technique. They plan to build motherboards and processors that will better utilize the liquid. It isn’t a matter of functioning, it is a matter of functioning better.
Currently their products run in a way that utilizes air to cool them down. You know this because all your gaming rigs probably have tons of fans pushing air through it. Well these products do not cool down efficiently in the liquid, at least not to levels that Intel is happy with. Liquid is a great source of pulling heat away, it absorbs the heat, then pushes it out into the other parts of the liquid. Overall this also allows the products to be more energy efficient than having fans constantly run all the time.
Thats cool and all, what does this have to deal with consoles? Well it is simple, if they can find a way to encase smaller components in this liquid, or find ways to push it through smaller components, then it could hit consoles. One of the biggest problems with consoles (and even phones) is that they pack a ton of power into a small device. This in return means they need to find a way to properly cool the device down so that it functions properly. If they could find a way to cool them down better, maybe they could add a little more horsepower to their consoles without overheating issues?