OnLive Will Be Pre-Installed on Ouya
OnLive will come pre-installed on the Ouya Android-based console launching next year.
Although the streaming service hasn't announced anything official through the regular channels, the Ouya Kickstarter page reports that OnLive will come pre-installed on the Android-powered console when it launches next year. Given the gaming service is already available for the Android platform, it only seems natural that OnLive would find a new home on the upcoming console.
"When OnLive first heard about Ouya, we were excited to see console gaming becoming more available and open," said OnLive General Manager Bruce Grove in a statement tacked on the Kickstarter page. "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," Grove added. "In OnLive's case, we pioneered a groundbreaking, cloud-based system that instantly delivers games to any device on demand."
OnLive already offers a dedicated "microconsole" for $99.99 that plugs directly into an HDMI port on any HDTV. It merely consists of two front-mounted USB ports, and a variety of outputs on the rear panel including Ethernet, HDMI-out, optical audio, component video and more. Like Vizio's new Co-Star set-top box, the Ouya will allow gamers to stream popular PC and console titles from the cloud directly to the unit itself.
OnLive provides a wide selection of cloud-served games including MLB 2K12, Sid Meier’s Civilization V, Batman: Arkham City, Darksiders II, Sonic the Hedgehog and more. Gamers can rent titles, purchase them outright for unlimited play, and/or subscribe to an all-you-can-eat service for $9.99 per month.
So far the Ouya Kickstarter project has accumulated $5,565,228 USD in pledged funds from 43,528 backers. In addition to the OnLive news, the latest update also included new images of the square-shaped console and its accompanying controller (seen left), the latter of which still hasn't decided on proper button labels (they're all still circles). Would using O U Y A be a little obnoxious, or should the team go with Android-like letters?

Somebody didn't read the article. Ouya is not your typical console either. Do a little more research before downing something you know nothing about.
If you want affordable gaming get a couple hundred dollars and build a decent PC. Hundreds of quality titles on Steam for a few bucks.
already a reason for me not to buy this
The GPU on a console really has nothing to do with Onlive. The gpu in the consoles wouldn't be rendering any images. That's the whole concept behind Onlive, to send pre-rendered graphics to a display over the internet. So even old less powerful computers or just anyone with a TV can play new games.
Sony and MS don't offer Onlive services on their consoles because the legal battles that would likely come up from being able to play PC/Xbox/PS games all on one system. And likely a thousand other reasons.
That is LATENCY, which was the same problem with Onlive.
If you are too far away from their server or have a mid range internet connection, your game will be soo laggy that its hardly playable.