The OnLive/OUYA partnership gives backers access to all of OnLive's library of games, as well as instant demos.
Copyright: OUYADescribing OUYA as "innovative", OnLive GM Bruce Grove released the following statement: "When OnLive first heard about OUYA, we were excited to see console gaming becoming more available and open. Like OUYA, we came to gaming with a new vision for making top-quality gaming accessible to more people, and we continue to look for ways to expand on that vision.
"OUYA is rethinking the console business, making waves by using standard technology to make gaming for your living room accessible, affordable and more innovative than ever.
"In OnLive's case, we pioneered a groundbreaking, cloud-based system that instantly delivers games to any device on demand.
"We are pleased to announce that OnLive will be available on OUYA at launch, extending and building on our commitment to make the best games available to everyone, everywhere."
OUYA is a $99 gaming system that plugs into a user's television, playing Android games, apps and new games designed specifically for the device.
The console and its controller were designed by One Laptop per Child creator Yves Behar and his firm fuseproject. The controller uses a design and layout similar to that of an Xbox 360 controller, with the addition of a touch pad in the centre so that it can still be compatible with touch-based Android games.
Ouya will run on a Tegra 3 quad-core processor with 1GB of RAM, making it comparable in power to the Nexus 7 tablet.
The most unique aspect of Ouya is that the console will be open to all developers. While games on consoles typically require expensive development tools and a publisher or first-party approval process, the Ouya console will act as a development kit allowing an open marketplace more similar to what is seen on smartphones.
Ouya's Kickstarter campaign has been a huge success so far, already raising over $5.5 million with 12 days remaining. It surpassed its initial goal of $950,000 (£608,000) on its first day, reaching $1.6 million (£1.03 million) within 24 hours.
Ouya is aiming to be available in retail stores worldwide from March 2013.