no it's not On-Live. On Live is basically gaming remotely over the internet, using your own computer only as a terminal. Ouya is a stand alone console, and while the games will be available on the cloud, you still have to download them and play them off your own device. Also, it will use ARM architecture (right now they are talking with nvidia to use Tegra3 chips, which is what the latest android phones and tablets have). It's basically going to be a lower powered gaming platform that runs Android, or maybe some proprietary software that is similar.

Right now, people are excited about it because we haven't seen anything new in the console gaming scene for quite some time. The PS3 and 360 are like 7 years old now, and running old, outdated hardware when compared to current PC specs.

Ouya is going to use ARM, which is just now approaching the computing power that consoles had 7 years ago. Low res android games look fine on a 4 inch or 10 inch screen, but probably not so great when you hook it up to the 50" in your living room. That to me doesn't sound very exciting on a tech level, but the primary business model is going to be that all the games for Ouya are free. That in itself may be enough to make the console relevant, but only if developers get on board with the idea that they have to give away their work for free. I don't know how or if Ouya plans on any type of incentives for developers. If there isn't any incentive, I doubt there will be a lot of outfits willing to make games for it.

The other issue I see is that *right now* it sounds great. But reality is that it may take some time to get things going, and we probably won't see Ouya consoles in stores until sometime next year. 2013 is the year that sony and microsoft will be announcing the next gen consoles - PS4 and Xbox 720 (or whatever they want to call it). These next gen consoles will be WAY more powerful than their current counterparts, and the games are going to look pretty amazing. Once that happens, there will be a lot less interest in Ouya