It looks like the guy who made it built a similar device for playing tetris and his youtube of the thing went viral with people who just couldn't believe that someone could actually make a computing device on their own or something, it sounds like it might have been as simple as plugging a screen and a dpad into an arduino in this case. It was the reaction of these people that must have encouraged him to go ahead, it looks like he showed it to lots of people before making the kickstarter for what was probably intended to be a modest run of these things and then he managed to get 10x as much.
My prediction is that he recovers his costs and then builds a single shipment of these devices which barely sell and then he ends up donating a lot of the hardware and money to educational entities. The dude seems cool and is probably as dumbfounded by hipster false nostalgia as we are but he was wise enough not to let the opportunity pass him by.
http://www.reddit.com/r/gaming/comments/362gjs/arduboy_a_handheld_gaming_system_that_is_the_size/
I have to wonder if wu saw the success of this thing and figured she might try and tweak the recipe and make her own because she doesn't understand why it's stupid and only sees that it's gotten funded.
We're not the only ones who think this is dumb. Why is it there is a new stupid kickstarter gadget every week. I remember a few months ago someone was selling a tor appliance that could have been replaced by a vbox or custom wrt firmware. Also it was stupid because there would be no way good to keep your tor software up to date.
It seems like I can deconverge any electronic convergence device and I'll be hailed as a genius on kickstarter...
More dumb
https://en.wikipedia.org/wiki/Ouya
This didn't turn out too good. I honestly can't figure out how they spent so much money on a custom case for a ARM dev board, bluetooth controller and a custom app store for android.