I think it may be a tough sell:
1. The Xbox One and PS4 are established gaming consoles with known names. This is new.
2. The Xbox One and PS4 have a big array of well known and popular titles available on it with interfaces designed specifically for use with a console remote. This game has very few, and lots of Android games not designed to work with a console remote. You need an internet connection to set up a game and to play, but you don't need a high speed connection during play to stream most of the content.
3. The Xbox One and PS4 have 500GB of storage - which is pathetic, considering how cheap a 2TB hard drive is these days. But 500GB sure beats 16GB.
4. The Xbox One and PS4 can play DVDs and Blu Rays. This can't. It can stream them, but the number of potential buyers with home media centers and their entire movie collection ripped for streaming is almost certainly much smaller than the number of potential buyers with DVDs and Blu Ray disks.
On the other hand:
1. This thing is cheaper.
2. If their game streaming service doesn't suck and the pricing is good, the game selection becomes way more attractive. It's still, so far, not as good as on one of the lead consoles. But I have to admit that spending, say, $10 or $15 per month to access to 30+ games looks more appealing than spending $50 or $60 per game even though the latter can be cheaper if you don't buy that many games over the life of the console.
3. Eventually I think most people - especially kids just entering the workforce now or in the next few years - may get out of the habit of buying DVDs and Blu Rays entirely and keep their entire movie collection in Vudu/Amazon Prime/Google Play/iTunes/whatever, in which case the lack of a drive is irrelevant. I have 300-odd DVDs (most purchased used), but I'm an old bastard.