[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.