Ah but its hardly the only "attach to a TV to play games" device out there. You have an extremely narrow window between "don't care / angry birds is good enough" and "Must have major title XYZ or its worthless". So you're J6P with your $700 TV and $150/month cable subscription and there's a $100 device thats not nearly as good as a mere $300 xbox, err...

Back in the industrial era there was this car called the Edsel which tried to wedge itself into a ecological niche too small for it to fit in, and it became a legend. Not a good legend BTW.