[muhfuhkuh]

"All of them had fan support and all of them failed in the marketplace"

But the people who are most likely to buy it day one just did, on Kickstarter. Ouya just crowdsourced the customer, the product message, and the marketplace.

"The question becomes bigger than, 'How does this console compete with the Xbox?' (which is already a HUGE question), it becomes 'How doe this console compete with Xbox Live?'."

How does Steam compete with Games for Windows or EA Origin if it is orders of magnitude smaller than both? How does the iPod Touch and iPhone compete with (and dominate) the dedicated gaming devices PSP/Vita and 3DS? How did the Wii compete with the 360 and PS3?

Smaller players with cheaper devices that require no initial player investment or outlay can be adopted en masse. Think about where HTC or Huawei or LG or Vizio were before they became near the tops worldwide in consumer electronics. Vizio wasn't even on the radar 10 years ago, now they are the #1 maker of TVs in the largest market in the world.

[Arelius]

> How does Steam compete with Games for Windows or EA Origin if it is orders of magnitude smaller than both?

Did you swap this around? Steam is much larger and more profitable, and has been around longer than either.

> How does the iPod Touch and iPhone compete with (and dominate) the dedicated gaming devices PSP/Vita and 3DS?

The iPhone competes because the hardware as a gaming device has an effective cost of $0, because you already bought it for it's phone functions.

> How did the Wii compete with the 360 and PS3?

And it seems weird to compare Nintendo with Ouya, Nintendo is a large game company with a lot of experience in this field, and competes due to a cheaper console that is innovating in a new and novel way.