The upstart technology firm OUYA (pronounced OOO-yah) is in the process of developing an under-$100 video game system that connects to the television and will provide free-to-play games.

The OUYA game console was designed by Yves Behar, the designer of the Jawbone Jambox. The new game console will use a customized, open Android-based operating system for high definition video games, according to USA Today.  

The $16 billion market of video game consoles has been traditionally owned by Microsoft, Nintendo and Sony. However, the features of the OUYA system is meant to set itself apart from its competition. It will be smaller than traditional consoles, but the controller is comparable in size to current models. Features include, two joysticks, a directional pad and a touch pad. Access to an online store will be available-similar to the Android Market and Apple App Store-that has numerous games, each of which must have a trial portion that is playable for free.

"After that trial, it is entirely up to the developer" how they want to make money from the consumer - for example, though full downloads, subscriptions or in-game purchases, CEO Julie Uhrman said in a USA Today article. "We are just tired of gamers spending $60 for a (console) game and feeling cheated."

"We wanted to come up with an idea that really leveraged where the growth in gaming was and bring it to the television," said Uhrman, a games industry veteran who previously worked at online game rental company GameFly, IGN.com and Vivendi Universal. "We think it is pretty disruptive."

OUYA begins a funding campaign today to raise $950,000 on Kickstarter.com for additional development of the product.

The sub-$100 price could perhaps drive Microsoft and Sony to drop prices on their systems, says Wedbush Securities analyst Michael Pachter. "Ouya could hit a sweet spot with gamers."

OUYA plans to have its system available in the first quarter of 2013.