[ianterrell]

I'm not sure if it's more accurately described as a middle ground or as a niche: Casual gamers who want to play cheap games on their TV, with a controller, and/or with friends. (Another possible interpretation of "midcore.")

I think Towerfall's popularity is due in some measure to hitting that specific formula: cheap & fun same screen multiplayer; "mobile philosophy" on a television.

I do think overall you're right that the casual market wants to play on devices they already own. It would not surprise me if Apple released a WiFi controller & added a dedicated Games store on the AppleTV (using touch screens while looking at a TV just feels awkward).

[jiggy2011]

The problem with having a niche market of people who buy your system because it is cheap is that it's not a particularly profitable thing for developers to target compared to a more serious console where you can charge $50 for a game or a smartphone/tablet where you make your money by selling many copies. So all of the best games end up being ported to other platforms anyway, which reduces the incentive to buy an Ouya unless you have the might to lock developers into exclusive deals.