Hadn't heard of it, no.
Quote: "The aim is to disrupt the console business by giving a path for indie game developers to reach gamers more easily and directly."
Yeaaaah, not going to happen. That's like saying "My new candy is going to disrupt all of the other candies!" or "My new game will make people not want to play any other game!" or "My Android console is going to disrupt the XB360 and PS3 and next gen consoles!"
I've had ideas like this many times before, though each time I wanted to build the OS. Using Android is just... Well, Android isn't a system built for games like consoles are. Console developers have the advantage of getting direct access to the hardware. I haven't researched this, so maybe they're offering something similar, but I read "Android-based" so...
I bought my Android phone for $75 on eBay, and I bet it'll be about as powerful as that $99 console.
The kotaku link isn't loading for me, so I might have some details off. Will revise later.
Cheers,
Aaron