You are greatly dismissing the limitations. The technical challenge the met was the bare minimum to start building any kind of credibility to attract consumer,

You are greatly dismissing the limitations. The technical challenge the met was the bare minimum to start building any kind of credibility to attract consumer, they knew it, and they did it. But still it was the bare minimum. Once you have the platform, the bare minimum, you can start trying to get customer. You do that by playing on price, quality (within your platform parameters), catalog and since it's subscription base, long term commitment. Basically, either it was a hit, or they had to accept bleeding a lot of money to finalize their market entry. They didn't push much and price and catalog, and they didn't commit either, as everyone expected. They pull off a tech demo, they were never serious on the gaming market, and it showed.