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This would probably be a low spec, cheap device. Somewhat like the Fire.

I really don't see core gamers paying this any attention but there is probably a market for it and it can be profitable although no way a match for the big three.

You gotta start somewhere and I think it is wise to start small and see if you can work you way up rather than take on the established companies head on as MS did. The industry has changed since MS and the first xbox.