You guys don't seem to grasp this: Tec Toy IS Sega in South America. This isn't a situation like the crappy Jakks Plug and Plays like we have here in the US. It's more like an NES on a chip system, only more legitimate. It won't be Java based; these games will be the real deal and licensed by Sega. That's why there are NO third party games in there and why it's being handled by Tec Toy. If it was anyone else, I'd say that it was like the NES on a chip systems - this one's more like the C64 joystick that came out a few years ago, which was an actual C64 with ROMs on it.
Yep, did some more checking about the new Tec Toy machine, and you're right, this is not one of those crappy "n-games-in-a-stick Atari 2600" things but a rom player that faithfully (well, more or less) reproduces 131 officially released SMS games, 22 of which are new Tec Toy productions (with Spanish screen text).
This and the fact that the system is officially licensed and thus a legit release/sequel to the last run of SMS consoles (that was the 120+ games machine, IIRC) with proper games instead of badly reprogrammed java-based garbage, definitely makes it interesting for those who want to come close to the real thing without having to buy a bare original SMS console and then go game-hunting on ebay, which in the end may turn out way more expensive than the $200+ price tag of the new Tec Toy machine. Plus, you get nice pads with it and can use it on your TV right away, just like the original console.
Then again, many people already have the SMS emulated in one way or another, SMS emulation also does not need huge PC processing power to be a decent substitute for the real thing, so legal aspects aside, I think the new system won't see a really wide distribution, at least not outside of South America or maybe parts of Europe (where the SMS was equally popular for a long time).
What's more, the missing cart slot makes the machine a one-way street, you are limited to the built-in games, would have been cool if Tec Toy had given some SMS oldtimers the chance to replace their already quite rusty SMS's with a new machine with extra features. I mean... a SMS games library is not complete without Wonder Boy!