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.