Maybe you're not familiar with Android game economics. The but most of the top grossing games are "free" with in app payment (freemium virtual in game items). The success of freemium varies per game categories, in more incumbent game styles, there aren't many. But in newer innovative game types, like casual social games, in app payment is the main revenue source for over 70% of top grossing games. There's a clear tendency towards this model. But many (most) developers still don't understand it well (it's far from trivial to use right).

Their businesses model, as they make clear in their kickstarter page, is the same as others, take 30% rev share of the games (most of the critics seem to have not read that). Which is a multi-billionaire fast growing industry on Android. There's nothing obviously wrong with them selling hardware cheap to make up for it with games.

And their insistence on free games with in app payment only shows they understand this industry much better than most game developers. Which gives them a huge leg over slow incumbent giants like nintendo and MS. Who are still struggling to understand what the hell this freemium thing is for. (tip: if you see a game developer use terms like "DLC" or "DRM", it's a red flag that they're not catching up with our time)