An Ouya which cost $99 would not stop someone from buying a more expensive console like the Xbox 360, PS3, or even the Wii Mini which also cost $99. The PS3, 360, Wii U, and Wii would not stop everyone from buying an Ouya since the Ouya is $99, and has a different fan base of people who like retro games, indie games, 2D games, mini games, and less intensive 3D games like Shadowgun, Riptide GP, and Asphalt 8 where they don't need to buy a $300-500 console with faster parts to enjoy retro games. Gaming on a smartphone, and tablet is a different experience compared to gaming with a controller, and TV. Plus, gamers may end up spending more money using their mobile phone or tablet as a console since they also need to buy a HDMI cable, wireless bluetooth gamepad controller, external MicroSD card to install more games, a stand, and pay a more expensive monthly phone bill to buy a faster phone like the LG Nexus 4 at $199 with a 2 year contract.
There are still a large number of people who research things before buying since many people use search engines to find comparison shopping websites to compare stuff before they buy. Shopping websites like Bestbuy also have comparison tools to make it easy for people to compare two products before they make a choice on which product to buy, or they can use the search engine to compare two products by searching for both products. The un-informed buyer who walk into a store may look at, and try out an Ouya, other Android consoles, tablet, smartphone, Xbox 360 Arcade, or Wii before they choose which one to buy.
People who play a
few games will most likely use their PC or Laptop, and may not buy any consoles since a console does not seem as worth it if you just plan on playing 1-5 games on it.
For casual gamers, and gamers who play a few games, and gaming isn't a big hobby in their life, the Ouya could be attractive to them since it is $99, and most of the games cost $1-15, or free because of donation, or free to play/freemium.
Some people still use regular/non-smart cell phones, and have no interest in tablets or smartphone, and Gaming PC since they are out of their price range, and cheaper subsidized smartphone have expensive monthly contracts which last 2 years unless you pay $500 to buy it without a contract. Smartphone users sometimes end up paying more in monthly subscriptions, and data limit overage fees than buying their own phone, and subscribing to a cheaper plan, or prepaid phones.
Some of the people who own other consoles like the PS4, Xbox One, Wii U, and other Micro-consoles like the Shield will also own a Ouya since many people don't limit themselves to one game console unless they choose to for different reasons. There are already 58221 Ouya sold from Kickstarter, and 3668 who donated less than $95 for a username on Ouya's online community when I added up the Ouya numbers on
http://www.kickstarter.com/projects/ouya/ouya-a-new-kind-of-video-game-console . The Ouya also sold a lot of pre-orders, and sold out at Gamestop, Amazon, and other retailers on launch day according to
http://news.cnet.com/8301-10797_3-57590867-235/ouya-launches-for-$99-already-sold-out-on-amazon-gamestop/ . It is also currently the 15th most sold console on Amazon.ca :
http://www.amazon.ca/gp/bestsellers/videogames/ref=sv_vg_3
There is an audience for Ouya which may get bigger over time. There is also the hacker audience who plan on using the Ouya for XBMC media streaming, using android apps, custom roms, Emulation, Ubuntu mobile, and tons of other projects on a $99 hackable console which is also an Android computer when a mouse and keyboard is connected wirelessly or with wired.
The Ouya could be like Linux, and Apple where the user population is a lot smaller than Windows, but there are enough users to keep them both going.