I don't see this device as competing with consoles so much as with PC's. I view it as a "friendly PC", much like Wii was a "friendly console". Easy to get into. It reminds me a bit of the concept of a Tablet... not really needed but if it seems cool and easy to use people may take to it instead of a traditinal PC. I think the market for it is small though. Most PC gamers want to play on a true PC. If they're playing in their living room it's hard to compete with the custom software, the ease of use and low cost of a console. So I think it could have a market...just like Alienware PC's have their niche, but I don't see it impacting the cosole market much.
If this were 6 years ago I could see a bit of a martket with Wii owners who wanted better graphics and the multiplats they were missing on Wii. They could pick this up instead of a PS360 if they had lots of cash. With the multimedia abilities of WiiU - and the assuredly excellent abilities of the future systems - I don't know that that market exsists anymore.
