Did you watch the video? I'm not sure what resolution that is pushing, but it clearly beats the Wii hands down and looks to be roughly competitive with the XBox 360/PS3. If that's 1080p it may even have a slight edge on them. (But I'd guess 720p. For the most part on a TV console it's not really worth pushing twice the pixels for such a marginal image quality gain.)
Pushing 1080p off a mobile GPU on a console with 1Gb of RAM is cool and all but good luck doing anything else impressive besides... well pushing 1080p. This thing is closer to a phone than a real console.
The consoles are 7 years old. Mobile games are getting pretty close to their performance. All the new ARM GPU architectures coming out this year and next year will support OpenGL ES 3.0 (OpenGL 3.2 features) and OpenCL 1.1.
Next year's hardware should also be 4-5x faster in GPU performance than Tegra 3 (that includes Tegra 4, as well as other chips), and around 300 gigaflops each, which I think already surpasses the Xbox 360 and PS3, or it's around as powerful.
If Google and many of their partners would put these chips in $99 set top boxes/consoles, and let them play 3D Android games, it could disrupt the console market, simply by flooding the market with the help of multiple manufacturers, a low price, and a decent gaming platform, that could only grow bigger if it takes off, not unlike how Google dominates the smartphone market through the sheer number of Android devices released by many, many manufacturers.
I just hope Google is smart enough to recognize this and actually go for it, instead of focusing solely on their "smart TV" strategy with their Google TV boxes.
They should be able to meet the same schedule with Tegra 4 or quad Krait (although at higher cost). So someone else may be shipping a box that's 4x the performance at the same time.
You might find it educational to compare the specs of the "real consoles" to your phones, and don't forget to account for the fact that the "real consoles" are running somewhat older CPUs and stuff so the GHz difference isn't necessarily reflected by straight-up division. Also the newer GPUs include quite a few newer tricks and capabilities that the current console gen don't have.
Remember, the XBox 360 is now coming up fast on seven years old. By the time this comes out, eight. It's a bit fuzzy when a phone/tablet gets released that completely beats the XBox 360/PS3 due to the inability to easily directly compare the stats, but if it hasn't already happened it'll certainly happen next year, no question.
Also, that video was of games, not just video. I mean, how much more concrete a proof do you need that games are possible than... games?
