There are some interesting forces at work here. The amount of time and effort needed to build a truly cutting edge game console has historically been high, further tools to get the most performance out of the hardware have required similar investments in expensive engineering time. This combined with selling the consoles into a very price sensitive market.
In order to recoup those costs, given the market realities, the console makers have traditionally resorted to extracting a 'tax' out of the game developers. On the theory that charging a few extra $ for your game to cover the cost of the tools / access is possible, whereas trying to fund the tool development on the back of base console sales is not possible.
Historically this has been the PC's "secret" weapon against game consoles for a long time. The cost of building tools was offset by developer fees across a much wider base of developers. "Free" tools were good enough if the hardware was sufficiently over powered, and gamers would spend $3500 on a machine that "normal" people would budget < $1000 for. That makes things flexible.
Then there are the phone games, which like PC games, have the advantage that the phone is useful for other stuff and there are more developers trying to write apps for it.
Ooya's promise is that the existing Android infrastructure / developers will support tool development, and the wide variety of handsets will constrain there efforts to work on systems that are similar to the modest abilities (relative to all android platforms) of the Ooya console.
So to respond to the articles point, the reason you cannot write a game for Xbox using $100 worth of tools is because if Microsoft only got $100 from everyone writing a game for the Xbox you would not have enough money to actually create the tools, much less support them decently. Their best effort at this was XNA but they have since killed that due to lack of adoption, if you are EA you can pay big bills, if you aren't, there are not enough of you to pay any bills.
Those are typically not the graphics-intensive ones. I'm not sure what specs your machine make it into a 'gaming' PC, but I have yet to see anyone in the industry call a machine with the specs that 1000$ gets you today a 'gaming machine'.
"Why can’t I write a game for <device with a CPU> tomorrow using $100 worth of tools and my existing Windows laptop and test it on my home <device with a CPU> or at my friends’ houses"
If as a company you're going to push for any device (game console, tablet, TV-box, phone, etc.), that seems like a number one pre-requisite to significant market share.
However, I just do not see the never ending thirst for apps that people act like exists. What I do see is people enjoying well produced, well adapted, easily distributed pieces of software that do what they need, whether that's in the form of a web application, a mobile app, or a desktop program.
I don't see people just flat-out demanding apps. No one says "I'd prefer to type all my documents on my 9 inch touch screen device" when there's a nice, light, ultrabook with a keyboard right next to it (and the same office suite on both devices).
HOWEVER: of course people want their devices to be able to do lots of cool things. However, that's only if you can do LOTS of really cool things and do them well.
Everybody, even your grandmother, snickers at the shoes equipped with a Twitter reader. There are limits, and developers would do well to take a good hard look at those limits.
Why? Because it's going to be an inferior product with an inferior ecosystem that no average gamer is going to trust to stick around. People stick with what they know and have liked in the past, unless you give them a very substantial reason to change direction (positive or negative).
Some people want OUYA to succeed, but that's not reason enough for it to.
The source is messy and compiler-specific, and many implementations are irrelevant to modern systems. For example, I recall Chapter 14 is about implementing multiplayer over serial cable by directly writing to I/O ports in assembly language to drive the UART. I never did get that to work, but trying to translate the book from the Watcom C + MASM toolchain to the QBASIC + DEBUG toolchain -- without access to a working copy of the former and zero prior C experience! -- actually taught me a lot.
So maybe there is a reason toolchains should be expensive -- to encourage starving students with lots of time but little money to expand their minds by jury-rigging alternatives :)
[1] http://www.amazon.com/Tricks-Game-Programming-Gurus-Andre-La...
It might interest you to know that according to http://en.wikipedia.org/wiki/DJGPP, there's been a DOS port of gcc since 1989.
Google Play, as far as I'm aware, don't do this for every country you sell in. Leading to situations where you may be liable for tax payments but won't know it unless you do the research yourself. This is discussed in more detail here: http://retrodreamer.com/blog/2012/03/why-dont-we-have-paid-v...
Actually it is 25$ once and for all.
I am wiling to guess that game development will follow the path of app stores. Consoles like the OUYA [1] will start to take over. The cycle from development to distribution will be cut by orders of magnitude. xBox needs to get on it and so do the other consoles!
[1] http://www.kickstarter.com/projects/ouya/ouya-a-new-kind-of-...