OUYA will fail

So OUYA grabbed 8.5m for their console. No one asked the question why Sony, Nintendo and Microsoft spend billions to develop consoles but they can get away doing one for 8m. And pay production.

No one asked if they violate patents of existing console owners - see their controller.

No one asked if their business model is questionable. How do they expect to earn money? If someone sells software on their console how much do THEY earn?

No one asked if piracy is a problem. Its rampant on Android already - and they even invite root kits and hackers to their console essentially destroying the business they are in. Who is going to develop on their console if you don't sell?

So the question is: why should I buy an Android phone with no screen and touch, only working on my TV? Which advantage does this console has over my PS3 or XBox?

If only one of the above points is true the OUYA is dead. As an investor I would run away - too risky. As a developer I would run away due to piracy. As a gamer I prefer to have those games in my pocket - not on my TV.


Bernhard Ewers said...

In general I think you are right, but there is one major fact you mentioned which does made Adnroid and, yes, windows, more successful: piracy!
Its all about Multiplikation. Think of cheap f2p games, developers may transfer in just a short time, as done on android already.
Think of customers having a cheap console with vast software for free. Although I do not see any major distribution and marketing with the rest the 8m.

Andreas Podgurski said...

There are some points speaking against the Ouya, which nearly nobody mentioned before. My biggest concern here is the physical logistic. Deploying software is one task, but deploying hardware worldwide is a very different. All mentioned people behind the Ouya were involved in developing such a device, but I never read how they want to handle only the Kickstarter backers at first. There are 60k backers, which already is a warehouse full of devices. This warehouse needs to be there. There need to be people, who receive the devices from china (I assume), repackage them for the worldwide spread backers, handle wrong addresses, returns, support for non-working devices etc. etc.
I don't see any reputation, which ensures a correct handling or even a correct calculation of this. The concept is nice and I believe it will succeed in one way or the other - like Android apps in televisions directly - but not under the roof of the Ouya in this form.