"I think the only chance of Shield succeeding is if it's incredibly cheap. Many low-end Android phones are free with a data plan, and the fact that these phones do almost everything that Shield does and more makes Shield a very tough sell. I've written about NVIDIA and think the stock is extremely cheap, but this gives me a little pause. My guess is that NVIDIA will try to sell Shield for at least a few hundred dollars, comparable to the price of the PS Vita and more expensive than any smart phone purchased with a plan. At that price point I don't see a clear market for this thing. What's worse, traditionally makers of game systems sell the system at a loss and then recoup the cost from game licensing fees. This allows the system cost to be fairly low. This is not possible with the Shield.
Hopefully, NVIDIA built Project Shield to simply showcase the power of the Tegra 4 processor and doesn't expect it to go mainstream. Otherwise, I think this is a pretty serious misstep."