I fail to be impressed
WHY does it need internet capability? Haven't they learned that the lack of decent upgradeability and horrible controls spell doom for set-top web boxes? WebTV has already gone the way of the dodo. Let it die! Just get a cheap PC and hook it up with DVI->HDMI, then use a wireless keyboard & mouse - you'll get all the functionality and more!
Also, the bit about 'gamer mode' is utter BS. Synchronization does not reduce lag; quicker image processing, or less image processing and quicker painting to the screen, reduces lag.
This smacks of putting worthless bloat in the hardware to ramp up the cost by implying that it is actually capable of doing these things well, while in fact it is no better than the competitor's model (and defunct WebTV).