I'm telling ya, they're going after the AOL'ers of the world. They want people who'll buy a box, plug it in, and pay a monthly fee to play games, and not ask any questions. As a customer, you won't own any of the games, the money you pay will go towards time to play them. Think of it almost like a cable subscription to a game channel.
I think the hardest part is them securing content. The first time a box gets hacked and it's games leaked to the web they're going to be in serious shit. (And you know this is going to happen, the /. crowd needs something to do now that they've all modded their ex-boxes to run linux.) http://www.depechemode.com