yea, the fact that it only works with android devices doesn't help it either. It's early though, google can come out with some updates that make it much be applicable to the everyday person.
Two things, one, the firmware inside also runs android, so I guess it can be updated.
Second, there's a lot of hacker potential. Someone managed to get a game running on it in 24 hours, so I think you'll see a lot of user hacks.
I don't feel it's steep. Compared to Logitech Squeezebox Touch ($250), this thing has great value. because it has faster hardware, larger RAM. Don't know what processor is in squeezebox, this thing is really really slow. The hardware of Nexus Q is the same as Nexus S smartphone, which is $600.
And it has high quality Class-D amp built in.
Basically it is Squeezebox + Integrated Amplifier all-in-one. The Google OS only streams audio from Google servers. But someone already hacked it, it should be no problem to make it function as other music streaming devices like squeezebox.
My chain of Squeezebox touch + Anedio D2 + B&O Icepowered Class-D amp system costs $3000. And Nexus Q did basically the same for $300. Maybe No comparison in sound quality, but for most people including entry-fi, that's a very cheap and convenient system.
And with social features, this thing could be a game changer....
Oh, plus video playback as well. Well we don't care about that.
Maybe in 6 months if Google is lucky and people's hacking of this thing actually gives a reason to buy. The probable half price it will cost then will help too.
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