The Ouya costs $99 (£65) and runs on Google's Android operating system. Games on the system will be a fraction of the cost of traditional console games, more comparable to those found on mobiles and tablets.
However, it may struggle to muscle in on a market dominated by big players such as PlayStation and Xbox, one analyst predicted. The Ouya was financed using crowdfunding website Kickstarter, where it attracted over $8m (£5.3m) in funding from 63,416 backers.
The company has begun sending out consoles to the first supporters of the project - while other interested gamers can pre-order the device. The Ouya will look to capitalise on a growing popularity for cheap, often independently produced games.
Mobile devices have eaten into the handheld gaming market, attracting millions of casual gamers who are not prepared to invest in bespoke gaming devices, but are still keen to dabble in gaming.
While traditional platforms, such as Nintendo's DS or Sony's PlayStation Vita, have titles costing in the region of £30-£40, games downloaded from app stores are considerably cheaper, and often free. Developers on these newer platforms are instead looking to other monetization methods, such as in-game upgrades.
The Ouya is the first major attempt to bring that same kind of disruption to the home gaming industry, says gaming analyst Piers Harding-Rolls, from IHS.
Source: BBC News
