Android-powered Ouya console is official

A sub-$100 video game console is in the works.

In a market where most consumers expect to pay $200 – $300 for a new system, the Ouya console, which is expected to sell for $99, could be the perfect choice for budget-conscious gamers.

The Ouya – which boasts a quad-core Nvidia Tegra 3 processor, 1GB of RAM and 8GB of storage – was first tipped off earlier this month when listings from referenced the device.

At the time, it was touted that users will be able to hack the device in order to play unofficial game titles through the Android software.

The head of the new startup Julie Uhrman was quoted by USA Today as saying, “We are just tired of gamers spending $60 for a (console) game and feeling cheated.”

“We wanted to come up with an idea that really leveraged where the growth in gaming was and bring it to the television,” she added.

Streaming video game devices appear to be the big thing these days. Onlive is as popular as ever, and is poised to get a large boost when it fully integrates with Google TV.

And Sony just acquired Gaikai, the other key player in the “Netflix for video games” market.

Of course, Android isn’t exactly the biggest name in the world of gaming, or even in the world of mobile gaming. So it certainly will be a test to make Ouya a success.

The Ouya is now on Kickstarter. Donors who provide $699 will receive a console, two controllers, and a game development kit.