Infinium Labs has an interesting product, but it also has some huge obstacles in its way. The main hurdle for gamers is probably price. Once you buy an Xbox, PlayStation 3, Wii or PC, you can operate it for free forever. With the Phantom, you would have to pay a monthly fee. Monthly fees are the norm for cable television and Internet service, but it's a hard sell for the game world. Every gamer is used to paying for a console once and only once. If you were to stop paying the monthly fee, the Phantom would cut you off from the only way to access new games.
The other issue is competition with normal PCs. A new desktop PC with the right peripherals can do most of the stuff the Phantom does (it doesn't have access to Infinium's game database, but it does have access to other games online), and you can also use it to surf the Internet with Explorer, keep track of your finances, create art, mix and burn CDs, write and print letters, etc.. The Phantom is a specialized PC in some ways -- it's designed to hook up easily to your entertainment system -- but in other ways, it's a handicapped PC. And that's sure to raise some eyebrows with PC gamers -- why pay for a PC when it doesn't do everything a PC should do?