How is that thing supposed to fit in your pocket? A console controller isn't a terribly efficient profile for something to jam between your phone, wallet, MP3 player, keys, earphones and whatever else is part of your daily kit.
This seems like yet another device to play the exact same games as every other console- what kind of exclusives will this thing have? Most people who like smartphone games already have a smartphone, and most PC gamers already have a more-than-suitable PC with a USB controller. It's not going to offer a drastically different experience from either, unless "The screen's too bloody small!" is viewed as a plus for PC users.