I seriously thought this was a spoof of the OUYA for about the first minute and a half or so.
The game-making engine they described is definitely template-based, saying things like, "gamers can create an array of game combinations... During manual game creation, the Oton creation automation engine collects all the required assets selected by the user. Once Oton has gathered this information, the custom engine combines this data to create a full functional game... the system will have several different configurations to create new games." Pretty much blatantly stating that they're using game engine templates and user configuration of said templates. Probably plug-and-play graphics/music/fx, it's extremely unlikely they'll let you create new 3D models or sound FX schemes, for example.
They don't promise anything spectacular like a truly dynamic AI, story automation engine, art/sound fx/music auto-generation and development tools (maybe they're relying on Linux/Android? for the very latter)... and they're awfully quiet on what the combinations of choices will produce in terms of variety by example.
I am imagining the options to at best look kind of like: RTS/FPS/RPG > Fantasy/Sci-Fi/Modern-day/Post-Apocalypse > 2D/3D > [...] To be fair, maybe there will be some cool results if they will aggregate and share crowd-sourced assets, but it's pretty unlikely this whole "automatic games" pitch will produce anything noteworthy, as WizardStan illustrated. And, it's their primary pitch...
EnGeniux Oton X? EnGeniux team? EnGeniux module tools? Come now, don't be so modest, tell us what you really think of yourselves.