Considering how poor the Ouya has done I am surprised anyone is bothering with this. As long as the price is low enough though I suppose it might be successful? The controller however looks like one of the cheap knock offs you used to have as a "spare" pad for the PS1/PS2 for when you friends come over.
lol "Game Box". That's what my dad called my brother's console back in the day of gamecube and xbox (he also called it "X-Cube". @xaser OUYA did poorly because they decided to be lazy and cheap with hardware. The concept was good but it was already old tech before it was even released, and they had more than enough money to change that.
I don't think hardware had anything to do with why Ouya failed. Unless you're talking about the crappy controller. No, the reason it flopped is the lack of compelling software.
Why aren't these guys bundling all the hardware into the controller? Why the need for a box? If you can fir the SOC, battery etc. into a phone, why not a controller?
'Cos they don't want to be accused of ripping off the Nvidia Shield, which is exactly what you just described (plus a flip-up screen, 'cos you might as well.)