I think the above makes excellent points about the bridge between mobile device and consoles because most people don't root/jailbreak their devices.
Given the costs, I suspect that they're not really going to sell at loss. Maybe some of the units sold through Kickstarter. Although, I suspect they're only marketing a small margin on the units. Nintendo has shown it's possible to sell hardware at a profit with the Wii. I think the idea is to do like other market places online where they take some percentage, say thirty, on all sales. And they've said they want some kind of free to try model, which is to entice people to buy more games.
Like others have said, a lot will depend on the games. It'll take some time, but if the units sell, the developers will come, which increases the chances of getting good games.
On a side, I understand about buying games from Google Play over other markets stores on Android. Although, I do like Amazon to a limited degree. Some games are exclusive to it. I tend to use it for the free app of the day. It's a nice way to try out some premium apps without having to pay. If I like, then I'll buy it later on Google Play; I've read the free app of the day on Amazon, the developers don't get anything.