They don't want AAA titles.
Well, their kickstarter page says:
That doesn't mean OUYA is an Android port. You can create the next big title in your bedroom – just like the good old days! Who needs pants!?
OUYA could change AAA game development, too. Forget about licensing fees, retail fees, and publishing fees.
I guess that's not directly their intention though, so my bad.
It's a home console, to be connected to a large TV.
It's the first thing they stress, it's that they all grew up playing in home consoles, and now the most simple and innovative games have only been focused on smartphones and tablets. They want to change that.
Okay, that makes sense in that respect. But it doesn't answer the business questions I have that ERP is having too. A console, any console, is a chicken-and-egg affair. You need software to sell hardware, and you need hardware to attract software. The idea of moving modern tablet games onto the TV is a fair one (and one I agree with, and one I expect the tablet to do), but I'm not seeing this bridging the gap in one step because the current Android library doesn't suit the TV experience. You'll need OUYA exclusives.
Android's game library is already quite decent. Take away a couple of AAA titles, I'd say it's comparable to the 3DS and PS Vita (and look at the games with the best reviews for those consoles, they're not AAA games).
I haven't found anything on Android that I value, whereas I can appreciate Sony and Nintendo games even though I don't care for their handhelds. Most stuff I've seen is either in-your-face merchandising ('free' game of running chores based on psychological exploitation requiring $15 worth of extras to be playable) or extremely dull touch stuff, quite often both, and the good stuff can get old pretty quickly. Touch puzzlers and ball rollers and various good games can be fun, but they aren't very meaty and nothing something I'd buy a device to play; they are an added bonus to devices with other particular functions. Now I'm not an extensive Android game player (because I've found little I like!), so I might well be missing stuff. It's probably not a coincidence though that the Eurogamer mobile game-of-the-day rarely features an Android game, and there have been numerous reports over year of devs starting to avoid Android due to fragmentation and development difficulties/costs.
The problem with releasing indie games for the Wii, X360 and PS3 is that the system is built for publishers. Nintendo, Sony and Microsoft take a way too big percentage of each game's sales, the admission process is way too long and expensive.
I absolutely agree (in principle anyhow, as we don't know what their takings per title are, but I know SDKs can be expensive). But what's stopping these indies releasing on PC? Okay, I guess the argument here is to move the gaming back to the TV, which is fair, but people have really been able to do that for ages with PC. Perhaps packaging it up in a user-friendly box is what's needed to make that happen, but their box isn't going to be any cheaper to develop for than Android or PC, and iOS development doesn't cost that much either.
I think it's more like:
The Indie developers will flock to OUYA like bees to honey because the console looks - by far - like their best chance to survive and see their dreams come true.
Only if 1) There's a significant install base; 2) those people are spending worthwhile amounts of money (the Kickstarter video makes an explicit note all games being free to play); 3) You aren't lost under a deluge of thousands and thousands of indie games all vying for attention. I can tell you this - the developers that pay the OUYA company significant amounts of money for front-page advertising of their games are the one's who'll typically make the most money from the market. It's still going to cost to be successful in this biz.
Correct me if I'm wrong, but AFAIK PS3's homebrew died because of Sony's disinterest, not the other way around.
I very much disagree. The GPU was unavailable, but homebrew devs had a new toy to play with offering amazing opportunities, and they just didn't bother. Cell could have powered amazing apps and I was shocked it was shunned considering homebrew has traditionally loved new, eccentric tech. Now Sony didn't really back and encourage homebrew, but it was there. Sony only axed OpenOS years after it was obviously dead. That's a whole other debate though.
Putting this all another way, the intention of this box is to get open game development and play away from tablets and back in front of the TV where it belongs. They effectively want to recreate the 8 bit experience. I can respect that. However, I'm unconvinced there's a market that wants to play Android games as they are on TV (one-button games where you just press X to jump), and I'm unconvinced developers will develop console-type, full controller games for this box if there isn't a significant userbase to support it. And I don't see who is going to spearhead sales to establish that userbase. At the moment it looks like the intenion is to sell OUYA to people who are playing Gameloft games on their tablets wishing they could play them on TV. These people will buy OUYA because it's cheap and enables that. That'll establish the userbase, and then devs will invest more in this specific segment of Android, which will encourage more adoption.
I think they should go ahead but also release the controller for Android devices, reducing the cost of entry for controller-based Android gaming dramatically ($30 instead of $100 for anyone with an Android tablet) and offering a much stronger market for devs. Devs could then develop touch and controller based interfaces to help with the transition. Once there's a clear market for Android games on the TV, then specific boxes will make more sense along with Android TVs.