I think the concept is a true winner. Here's why:

- $99 is very very affordable for the "poor people" and an impulse buy
- The hardware looks beautiful (console +controller)
- ALL GAMES (in the hundreds) will be FREE to play.
only pay to unlock levels/features which cost below $10 (eg/ in game purchases)
- Indie/Individual developers and groups can make direct games (Dev friendly)
- FREE internet support, unlike Xbox Live
- Emulators support (Psx, N64, GBA, SNES, Sega... perhaps DSi and Dreamcast in the future)
- Android its much better than Linux distro's for home entertainment (ui, app support etc etc)
- Allows custom firmware

For the knowledgable person, and the average consumer this is a GREAT buy.
Unfortunately it won't succeed because:
- Availability (very low)
- Marketing (non-existant)
- Game support (possibly never arrives from reputable sources, fear of loss of IP)
- Pretty weak (Tegra3 on Android can only handle as much, Wii U/Xbox/PS4 likely to blow it out of water and they're just around the corner)
- No other incentive to buy, just a shiny "hackers" box with free content
... ... ....
If this thing was running something else like Steam/OnLive, had widerspread availability and marketing. I could see it compete hard with the Wii and Wii U, maybe even Xbox, but not with PS3 or PC gamers.