Always-on connectivity would allow it to check legal keys against what the is on the console to prove purchase - just like any notable DRM does.

This is a concern of mine as well. For those not looking to hack or pirate the system why won't they just stick with one of the main console makers? I understand price could be a concern, but if it comes off as a cheap knockoff with no name titles the typical consumer isn't going to bite. What parent would buy an OUYA over a Nintendo, PlayStation, or Xbox? Xbox wasn't a strong brand name until the 360. OUYA's start seems even harder to pull off than when Microsoft entered.

People seem to forget that the DS and PS2 were pirated to hell; Yet they had an amazing line-up of games. And again, Android is already pirated to high heaven 

There were plenty of non-pirates that bought the system though. An Android system for your tv? The $99 price point seems like the main attraction, but we still don't know what pricing will be for the big 3's consoles. How great will OUYA games really be? Android's current strength is that it's a phone. Entering the home console market just leaves a bunch of questions. They could do well, they could fall on their face, but there doesn't seem to be much of a reason to have faith it will be huge.

I mean if they are going after the market of those who use Android devices and not home consoles, they need to convince them to use home consoles. If they are going after those who use home consoles, they need to convince them to switch their prefered system. If they are attracting new customers, they will have a hard time standing out when the Big 3 are so well known. If they are going after PC gamers, then what's the advantage of leaving PC? They could attract programmers, but aren't they aleady set on mobile devices? Are they going to be able to attract the 3rd party support that is going to give them more relevant games than what's currently on Android devices? Plenty of those games already exist on other consoles. Even their launch window is tainted by the fact Wii U will be out before the holiday this year. Kickstarter is one thing, especially when given those reward incentives, but I find this console to not have the cards stacked in their favor.

You mis-calculated. They are at 27,000 now, which is still an incredible number after only 2 days.

My bad. I was looking at the remaining number. ;)

The same thing should happen with this console, yes, there will be people that pirate it, but the majority of the people should buy games. Not to mention that the majority of games on Android are free anyways and are ad supported. Onlive, Amazon streaming, Netflix, all for $99 is a great deal. The new Google cube thing is $300 and doesn't do half of what this does. The rest of your post seems mostly like a rant. That has nothing to do with what I posted >__>

It's about average consumers, ones that buy games. It's about the potential market they could attract. In comparison to the already established console makers, OUYA could be rather unattractive to consumers. $99 is its saving grace but only if the market views it as a worthwhile device, as in why get this over a phone?

A phone can be either expensive or reequire a contract, so there is that.  A phone is small, so for people who want larger more complex games, they'll want a tablet, and those who want even more complex, yet still cheap games, there is this.

At the moment the indie, cheap, non-uber-professional-studio game market is booming. XBLA, PSN, android play, amazon market, steam indie, etc. Cheap $1-$2 games can be pretty darn lucrative, especially for those small devs that have a good idea and want to get that idea on as many screens as possible.

You can do more things on a TV than you can on a tablet or phone. Off the top of my head I can easily see a game that on the phone behaves one way (as you expect a phone game to play), acts a different way on a tablet (giving you more complex gameplay), and yet another way on a TV (with much more complex multiplayer, etc gameplay).

I still don't see a strong argument over consumers getting this box over getting/using their smartphones. Many have argued that the popularity of mobile gaming is because of the consumer's preceived neccessity of a cell phone. Eliminating that from the equation isn't doing it any favors and when push comes to shove consumers would be better off buying a console from the big three, a PS2 would provide someone with a plethora of titles. OUYA seems far too niche, attracting those looking to pirate or those looking to develop over actual user base.