The purpose of the article is to offer a response to all of these concerns you just posted. It's all in there.
Xbox Live isn't a monopoly. All of the console guys compete in the same space. If SEN had better prices, it would drive PS3/4 adoption ahead of Xbox.
If physical retail didn't exist and digital download was the primary revenue stream, they would need to price games attractively through that, or risk losing the install base. They can'...
Don't know how to reply to your reply Protoman, but yeah, I have seen a lot of people around the web saying Ouya is basically a tablet. They see the specs and write it off as a tablet for the living room, making the assumption that all the games will be tablet stuff pumped up to a big screen. I wanted to get across that it's not necessarily the case just because Ouya and some tablets share common brains.
I meant the scale of production is closer to Raspberry Pi than something like Xbox 360. It's a small scale operation. Was not comparing features.
Tegra 3 = tablet is a notion I was out to dispel. It's an FAQ I was answering.
I say the worst start because RROD was killing them. Granted PS3 has come a long way also. 360 has to be the most transformed console in history, if you compare the system software (dashboard) it had originally to what it has today, that user interface, all those extra features and services filled in, tight Kinect integration. And then the hardware itself overcoming the RROD, operating much more quietly, allowing full game installs from DVD and booting from USB drives. The list goes on.
Look at the image? The leaked spec sheet