Wow, very interesting.
Not only does this omit the unsightly bezel that the ToyShock has, but it's coming out with SW as it's artwork as opposed to some unknown (to the target market) 1980's title/artwork and also has a dedicated LCD for scoring as opposed to 4-player digital scores. Also B/W >>> Gottlieb titles on the whole.
If they can also address the lag issues (boardset, or monitor?), get some popular B/W titles in there, and have this thing in the same ballpark price-wise, they will have a lot of new buyers.
I will say though, after playing an Arcade1Up in Walmart when considering whether to make a MAME for my son, it was definitely MDF feeling, whereas reviews for the ToyShock on YouTube praise the construction. That may be the main thing ToyShock has over Arcade1Up if the latter uses the same build quality as their arcade cabinets.
Stern's website should now link you to this toy for kids when you click the link below.