This will fail harder than Phantom - my guess is the console never sees the light of retail.
While an interesting idea in theory - actually setting up manufacturing and production, marketing it, securing game developers for it etc - that will take more than $3 Mil. Plus a console to play phone games? Meh. An open system designed to be hacked? good bye most top tier developers.
A new hardware from an unknown group - no one will invest in developing for it and anything would be simply a port. Between Wiis Xboxes Playstations, Vitas, 3DSes, PCs, Tablets, Smart Phones, even On Live - I think there are plenty of things to play games on at all price ranges. Another console isn't needed.