Wow this is an interesting development. I'm interested to see how both their sound card and headphones turn out.
I'm skeptical that it'll offer better gaming performance or quality than Creative's cards, due in no large part to their EAX and everything. However if they can get close, and offer something that can give them an advantage over Creative, I think that gamer's might just eat this up.
As for music and other audio quality, I'm curious to see how it performs there as well. It shouldn't be too hard to match Creative in this area.
My guess is that they probably went with some HD Audio (Azalia, can't think of any of the others) but then put higher quality DACs on it than what Creative uses. If this is true than music quality should be better.
Those headphones look like they might be pretty decent as well, but I have to say I'm more skeptical of them.
Of course price is a big question as well.
They also have a new keyboard that looks pretty slick.