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What we didn't know is that the folks at OUYA are working directly with a team of folks at NVIDIA on the project, and that NVIDIA is helping the company to max out its Tegra 3 processor for use on a console rather than a mobile (no battery dependency means the little chip can go much further than usual).
ENGADGET
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For graphic or processor intense games you typically need a dedicated console like the XBox, Wii or PlayStation or a pretty powerful PC.
FORBES: Connect
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Nvidia reports Tegra processor sales as part of its mobile and game console computing chip division, which constitutes 10.8% of our stock price estimate for the company.
FORBES: Nvidia Chip Meets Make Or Break Moment In Google Android Market
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The contest judges entrants on how effectively they use the OUYA platform too, including processor, sound, controller integration, in-game payments and other elements available in the console's development kit.
ENGADGET: OUYA and Kill Screen announce CREATE Game Jam, bait developers with $45,000 in prizes
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Inside the product beats the powerful 1GHz Snapdragon processor, which, in addition to the large screen, turns this smartphone into a perfect game console.
ENGADGET: Acer reveals 4.8-inch Android smartphone with 1024x480 screen resolution