So you're saying that their lead engineer, who has over a decade of experience getting hardware manufactured, most recently the Amazon Kindle, is an incompetent liar? That the Angel investor consulants who all have experience getting hardware manufactured, including Ed Fries who headed the XBox project at Microsoft, don't know what they are talking about?
And how do you explain the Raspberry Pi, which had an initial batch of 10,000 units manufactured in Taiwan and China, funded primarily by $25 preorders?
What experience do you have getting products manufactured, that you can make this claim?
Edit:
I just did some research, and found a Chinese company that gave some example prices to get manufacturing started.
So you figure, let's say this is one of the "larger projects", in excess of $100,000, so let's say $150,000 to get the manufacturing process setup. This cost has nothing to do with the number of units they are manufacturing, it'd be the same if they were making one or 100,000 Ouya's. So the more preorders the better; it means that of the 60,000 or so Ouya's being manufactured for pre-launch, $2.50 of each unit's $99 price would go towards setting up the manufacturing. And thanks to Kickstarter, they got this money all up front.