Marketing it as a game machine pits it directly against a pile of competitors at half the price (or less).
How about something to attract new and untapped audiences to features and tasks that you can not do with any other device that fits in your pocket.
1. Cable/DSL wifi installers.
Setting up a new router with custom software. I did this using my Pandora, a USB to 10/100 Ethernet adapter and a new ASUS RT-N66U router. I downloaded the Tomato version of DD-WRT, connected into the router, set it for update and loaded the hot-rodded OS onto it. Then I made all of the needed settings and tested wired AND wireless connectivity. Then I SSH'd into the servers to check that they were all getting connected properly. Every cable & phone company that installs home networking routers needs to equip their installer fleet with one of these. No other device would allow them to do all of this then put the 'configure and test computer' into a slot in their tool belt and move on to the next install.
2. Photo Journalists.
SSHFS into a server from a free internet connection (hotel bar, coffee shop, etc) to back up/save content. Seems mind numbing boring - unless you're a photo journalist and want to make sure you have a secured copy of the day's work before stepping on a plane to the next gig - while using a device that fits nicely in your camera bag. No need to lug a laptop along anymore just to submit content. Did I mention that pretty much all professional and high end consumer cameras have settled on SD as primary media?
3. Systems Administrators.
So - you're on call for systems administration. That normally means that you're hauling a laptop around even if you just stop down to the store for diapers and beer. Remote admin using a cell phone is beyond frustrating - needs a keyboard and mouse. The Pandora connected to your Bluetooth tether or phone-hot-spot can let you remote in, fix the issue and move on without searching for a desk to set the laptop up on, logging in, etc... Instead of a laptop bag or a murse, slip the Pandora in your inside coat pocket, your phone in your pants pocket and go.
All 3 of those are business applications. I am not aware of any device currently being sold that can do them better than the Pandora. Think of the Cable/DSL installer example. If it were sold to a major company as 'standard gear' for their installers and service personnel, a single sale or contract could be more units than all of what has been produced so far.
Yes, it's great for games. However, there are lots of devices that play games. How many devices fit in a tool belt that can configure, test, back-up and re-image a router on-site?
I'm not saying to ignore the gamer crowd - they're why the controls work so well. But if you actually managed to get this thing into a few B2B shows in the right industries...? Hmm - maybe?