It's 720p so should be able to run most

I wonder if this will support Fidelity FX? If so that could make a huge difference in performance.

Realistically speaking, the base model won't. And it's not even about the hardware capabilites. But the storage space is minuscule. You'll be able to fill
64gb with indies to your heart's content. But if you want to focus on AAA you need to expand that storage and suddenly that $400 price tag starts becoming sketchy. A 1tb SSD on the cheaper side will cost you over $100. When you're already on next gen console territory when it comes to price or half way to a decent PC you start questioning just how worthy is the investment.

At 720p/30fps? Sure. Game scaling also seems to be improving in recent years as well. I would argue that playing like this is the least ideal way to play a game, but for some portability is paramount, so we'll see how they do. The real issue will be getting their foot in the extremely competitive market. I'm not even sure Xbox would have stuck around if Sony hadn't completely blown the ps3 launch, releasing it a year later and at a much higher price tag than the 360, effectively leaving them with zero competition for several years. The more competition, the better though, IMO. So good luck to em.

While scailing on pc has gotten better, general optimization is a hit and miss, Full Pc gaming allows you to brute force performance with upgrades. Not to mention at 720p the cpu is the main factor of performance. So if a big shift happens in games and this thing can't handle it, people will be stuck with an indie machine. We see this happen in gaming laptops, they work great at launch, then really quickly become obsolete and struggle.

Only way this doesnt happen is if developers specifically target this machine while developing games so it can run them well, which if you play pc games, you know that will never happen.