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Ouya Pitches New Android-Based Gaming Console On Kickstarter

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Sony and Microsoft are preparing to launch new versions of their video game consoles. But Sony's recent acquisition of Gaikai raised the prospect of more games being played via streaming rather than via traditional packaged games.

But a new entrant is developing a console device, Ouya. The device, which will cost less than $100, is an Android-based console and controller that will have an open platform for developers. It's designed by Yves Behar, who designed the Jambox, and the One Laptop Per Child laptop. There's still room for another console, says Ouya founder and CEO Julie Uhrman. Ouya is launching its Kickstarter campaign today, targeting $950,000. The company expects it to be available for consumers in the first quarter of 2013.

"We don't believe consoles are dead," Uhrman says. "The price point of consoles is too high... TV is the best screen to play games, if you survey any gamer. Three out of four dollars spent on gaming are spent on TV. Nothing replicates the HD quality of TV or the earth-shattering surround sound."

But will Ouya be earth-shattering in the console world? With Ouya, any developer can build on the platform, she says. All games on Ouya are required to be free-to-play. Developers can monetize them through virtual goods, subscriptions or purchasing after a limited time demo. The only requirement is that consumers can get their hands on the game for free for at least a certain period of time. Ouya will take a 30% cut of transactions, just as others like Apple do on their platform. "We're providing the hardware to consumers as inexpensively as we can. We think we're pricing Ouya at a price that's compelling to own it."

How will it make it so cheaply? Hardware is getting much cheaper to make, Uhrman says. Also Ouya is stripping out all the frills and focusing on a powerful chip set and graphics quality. There's no gyroscope or accelerometer. Instead Ouya focuses on the game controller, which Uhrman calls the company's "love letter to gamers." The controller will have a touch pad so that games built for mobile touch-screen devices will be transferable to Ouya.

There's a "braindrain" now as developers move from console games to mobile games, says Uhrman, formerly of IGN. "That's a shame," Uhrman says. "Games on TV are  still a closed system and they cost so much more. We developed Ouya to be an open product for gamers and developers."

Ouya will have a wide range of games from hard core to social games, including shooters, RPGs, racing and sports games.