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After raising $8.6M on Kickstarter, Ouya keeps the ball rolling

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"People assume it can't be done unless you spend billions," he said. "But then things change, and it can become 1,000 times less expensive to get into a new business. I think that is what is happening here. Ouya noticed that and acted on it."

Bahat is optimistic about gaming despite the slowdown in traditional retail sales.

"In order for gaming on a TV to win in the long term, it has to be as open as the other platforms it is competing with," Bahat said. "Until Ouya came along, it wasn't in any way open. It offers a great hope for gaming. It is a shame that in the last few years, it has gotten harder. Bringing incredibly creative game experiences to the TV should be a lot easier. "

Ouya's supporters include Diig founder Jay Adelson, Jawbone founder Hosain Rahman, Flixter founder Joe Greenstein, former Microsoft vice president Ed Fries, Marcus “Notch” Persson of Minecraft developer Mojang, Robert Bowling of Human Element studio Robotoki, and inXile’s Brian Fargo. Ouya is targeting a launch in March 2013.

Besides Ouya are there any other real attempts to build alternative consoles now?

Steam. Steam TV seems like a likely precursor to the "SteamBox"

Cool. This is starting to get interesting!

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