I don't see the problem. A relatively cheap set top box with decent controller that allows me to play my play store games at very high quality settings and also stream high quality pc games relatively cheaply.
Maybe the hardware will be stronger than we think so can actually deliver more performance than the Switch in a set top box for low money. $100 or so. They throw in a 100hrs of game access. It's also fully integrated with your android phone you can share game saves between both devices so can play the same games at home or on the go.
Lots of ways they can make it into a compelling package. What if its $8 a month for a low cost package with older movies and tv and some games and tiered levels offering better movies and games at higher prices.
Whatever it will be interesting to see what they come up with. Their problem is more likely to be compelling content rather than the hardware.
