As an Android device, it's probably unsurprising that OnLive will appear on OUYA. The service is already available on many other Android devices, and has worked well in our own play tests. Given an OnLive game system costs $99 by itself, the Kickstarter-backed hardware project certainly seems like a good "deal."
In a Kickstarter update, OUYA boasts that the deal with OnLive will provide hundreds of games available at launch. OnLive's policy of carrying instant demos for most games should take care of OUYA's requirement to offer some free element, too.
The update also gives a look at the controller and console (above), both of which are still in development. The team says it is still designing both pieces of hardware, and that the buttons will be replaced with a more colorblind-friendly option at some point. This look echoes comments we recently heard from the hardware designer.
The Kickstarter project is currently sitting at approximately $5.6 million, with 12 days left to go.