Ouch, I know that when you see someone has already created a product that you are working on you should take it as a validation of your idea and not become discouraged. However, seeing this I can't help feeling bad for the OP. The OP has a prototype, while this (seems) like a fully fledged and very slick product with all bases covered and it is even cheap.

$900-1200 isn't what I'd call "cheap" (OP says parts for their prototype is around $150).

Also, another person in this thread mentioned a 42" one from China thats $120 [1]. That is more in the "cheap" range.

[1] http://goo.gl/N02wRa

If parts for your prototype are around $150, most conventional electronic product pricing wisdom would put this at around $600-$750 retail.

If the OP hasn't done research into potential/current competitors then the OP shouldn't be taking it further than a prototype anyway.

It definitely sucks to prototype something that already exists, but it's probably a good lesson too.

Since the company seems to be a hardware company, I'm curious, is any of the software open source?