The midrange SoCs found in boxes like this have a surprising amount of power. They are capable of powering games with graphical fidelity that falls somewhere in between the PS2 and PS3. Plus they aren't as RAM starved as those consoles.
The market has so far been defined by the capabilities of mobile devices. That means simplified controls and gameplay designed for short sessions. There's no technical reason for these limitations in the streaming box market, OUYA failed and Amazon might fail but the market still exists. Consumers have bought tens of millions of these devices just to watch TV, eventually someone will be able to expand to tap the couch gaming market. The price point is low, install base high, and the processing power is just sitting there and waiting.
The market has so far been defined by the capabilities of mobile devices. That means simplified controls and gameplay designed for short sessions. There's no technical reason for these limitations in the streaming box market, OUYA failed and Amazon might fail but the market still exists. Consumers have bought tens of millions of these devices just to watch TV, eventually someone will be able to expand to tap the couch gaming market. The price point is low, install base high, and the processing power is just sitting there and waiting.