Interesting. Some important questions are open: price, release date, exclusives.

Price: The feature-list sounds like it will be expensive. At least more than 200 €/$, probably more than 300. That's too expensive for a handheld. I don't think Nvidia will going to make a loss on it, as I can't see how they enforce licensed games with Android.
Release date: If it comes not this year or early next year it will have no chance.
Exclusives: Android and streaming PC-games is fine, but they need something more.The announcement didn't contained any exclusives? Nvidia will learn the hard way, that a console-manufacturer needs to create 1st-party-games.

Some other thoughts:
* Battery life is great, much better than 3DS. Why di8d Nintendo drop the ball on this?
* The design is weird - at least memorable for everyone if you play that on a train or bus.
* I cant think that the touch-feature is working well on the top-screen. That will make many Android-games unplayable - they are designed for the screen in your hand.

You still need your pc next to the tv, there is no way a HD RGB video signal is going to go over wifi. That's 2.8 gbps for 1080p60, 11.1 gbps for 2160p60. They'll need some form of compression just like the WiiU pad uses to get a 720p video signal on the controller. 720p60 is still 1.2 gbps. On a good wireless N connection you max out at 300 mbps.
It's possible with compression ofcourse, but real time compression down to reliable wifi reception might not look all that great on a big tv.

Well, I wrote in my next post, that 1st-party-offerings are probably needed. Anyways, I think of all these option the Ouya has the best shot. It has some advantages: it secured at least some games (+Android and Onlive), they delivered already thousands of dev-kits, they will launch in April (not next year or sometime) and most importantly: they are absurdly cheap. I can see this havng some moderate success.

On the other hand I see many open points on shield, and steambox is a rumor so far.

Well it beats me sorry as to the other player.

I think smartphones/tablets are also threats to Nintendo's home console market. They responded to the threat of smartphones essentially by eating Sony's market and moving towards the core gamer with their latest handheld because a lot of the DS owners will probably be starting to play games on things like the iPad given the same kind of simple gameplay is easy to implement on them whereas the more complicated 3D games are much safer for now. I think the Wuu's tablet is an attempt to embrace the same kinds of games as the tablets in order to stave off some of the encrouchment.

The nVidia/Valve thing is an interesting development especially given how nVidia has been developing cloud gaming infrastructure. On the one hand you've got something for the hardcore gamer, I.E. the guy who spends $500+ on games / heaps on hardware whom you could say are the best customers so whilst they may be few their value is immense. On the other hand you've got the option of very low entry cost into gaming and streaming from their services and direct competition for customers from a Valve console so you've got competition for both ends of the market.

Yeah, I can't argue with any one of your points, they seem spot on =) and to think they say smartphones/tablets have hurt the game industry! Just look at this; it's more alive and vibrant than ever!

It needs to be encoded to send it. Modern nVidia GPUs have more than enough performance to encode in real time and they mentioned encoding in their presentation. They've spent some time on it apparently.

I think Nintendos next handheld is pretty safe as well; it is after all a dedicated gaming device and thus superior to any smartphone games. It might not sell 150m+ - but they should be able to do some good numbers none the less. But that's like 3-5 years from now ^^

I don't really think Wii U's a reaction to tablets. As far as I know development started back in 2008 - and that's very close in time of the release of the first iPhone; so that market wasn't that big then. I think they saw the success of the DS and wanted a new "gimmick" if you will for their next home console as well (like the Wii had motion controls). Unfortunately Apple launched the iPad and thus destroyed the novelty of the Wii Us GamePad before it even was launched.

How ever this plays out, 2013 will be a very interesting year in gaming!!!

Project Shield looks like it is a bit clunky to hold, clunky to pocket, extra breakable hinge screen, and has to run a full android OS instead of a fully optimized console OS.

To be honest, I think this will be great for emulators around the house, but It seems useless for everything else that the 500,000,000+ android devices on the market already do.

A form factor similar to the Vita would have been better, but I think both Vita and Project Shield could be smaller and benefit from being more portable.

Really though, I feel like plug and play devices like the GBA SP got taken for granted (Keep It Simple Stupid). You plug in the games, and you play. I would love to buy a current hardware, high battery life, single use gaming device nowadays.

With multifunction devices, I feel like I waste to much damn time on trying to use janky control schemes, waiting for installs/updates/patches/downloads/loadscreens/etc., getting distracted using pointless apps, etc. It is like I get some sort of technology ADHD brought about by the nature of the device itself.

Hmm... I might just start carrying around my GBA SP again and actually play games (Wish GBA had sleep mode though). :/

I'll believe it when I see it. WiiU pad's compressed 480p doesn't even make it halfway to the bedroom. And then you're still stuck with a hdmi lead connected from the controller to the tv.
I'm sure Eurogamer's DF will put it under the loop when it comes out. Should be an interesting read.

Glorious PC master race now has it's own handheld device? Nice!