It looks like a Nintendo Wii made out of rubber. And I would assume it was going after the same market.
TBH with you I can see it possibly being a minor success, if it is sub £100. There will be quite a few people in the market for a nintendo wii who wont know any better, see this as a cheaper alternative and then purchase it. I can see it being succesful in the short term, but without any decent games for it the system wont last.
Maybe its a product to get the arctic cooling name into the minds of console gamers so they can then push after market console cooling products and peripherals.