Alternative option: With a few gigs of read-only memory, you could burn a game image onto it, and market a device dedicated to that single game.
You could just about eliminate any and all compatibility and piracy issues, you wouldn't require customers to have an existing console, and conceivably you could still profitably sell the game at $50.
It wouldn't be very environmentally friendly (you're forcing players to buy a new console for every game) but it could make economic sense.
The devices are certainly small enough to stack behind your TV; you just need a decent KVM switch designed to work with these devices.
I suppose you are right, if the game were facebook and you could buy a $50 dongle that has facebook and netflix people would probably only run that game.
You could just about eliminate any and all compatibility and piracy issues, you wouldn't require customers to have an existing console, and conceivably you could still profitably sell the game at $50.
It wouldn't be very environmentally friendly (you're forcing players to buy a new console for every game) but it could make economic sense.
The devices are certainly small enough to stack behind your TV; you just need a decent KVM switch designed to work with these devices.