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What could be a kick in the balls could be price: the 3DO suffered from the same fate !

Your typical console manufacturers can launch a console for break even(WiiU hopefully by now, XBone) or a loss (PS360, PS4) and make the money off the software !

....this wasn´t the the case with the 3DO, the hardware manufactuers (Panasonic and a few others) don´t get any money from the royalties so they had to make money of the hardware itself !
Couple that with "fairly expensive" innards....and you have a pretty non competetive price tag !

I´m assuming that this model will be used by the GabeCube of course (not necessarily though)