Most games require an internet connection to play these days (which is super annoying, especially for single player titles). I see this as an alternative to buying a $300+ console and a few $60 games. You're just paying $10 a month to play a library of games (it looks like they're starting with some good ones) and as long as you have a decent connection, 10MB Down, It's the same as having a console pretty much anywhere you carry a controller. It doesn't even have to be their controller.
I've tested it and it works. You load it up and play games, just like you're playing on a console. It keeps your saves, you can jump from device to device pretty easily.