They call it Project Shield. Watch the press conference. It can play Android games, like all Android devices can, but it can also stream games from your PC via wi-fi. In the latter case, why not just buy a controller and play the games directly on your PC?
Perhaps it's PC functionality is there to enable portability of a video game out of a house and into a more portable, handheld scene? It's an interesting concept, and I must admit I don't fully understand how they are expecting this clam to stream PC games, not to mention how difficult it may be for the average casual user to understand the transfer of controls between PC and Shield. Oh well. I can't wait to play ... Crysis 2 on it... *squeals*
There was a Razer handheld that was supposed to come out a while back ago that kinda looks like this. Except that was a keyboard and not a controller with a screen. I think it's a neat concept that probably wont do very well. Reminds me of those small screens you would attach to your PS1 and Gamecube to play games in your car.