There are all types of Android dongles that are cheaper than this, and relatively comparable. The Tegra 3 SoC keeps getting cheaper to produce, and Nvidia said that $200 Tegra 3 tablets would be the norm towards the end of this year...so it's really not that hard to fathom. Sure there are a ton of casual (non-) games on Android (and iOS), but there are also some very good REAL games, like Shadow Gun, Riptide GP, N.O.V.A. (1, 2 and 3, which looks absolutely stunning), Modern Combat 3, etc. Even the Amazing Spider-Man for the most part is pretty great (though obviously rushed). The point is, these guys aren't going after Microsoft, Nintendo, or SONY, but they're going after casual games and Android/iOS gamers who are looking for a console experience without the console gaming pricetag, and they could easily get this made and be quite successful.