Ouya is expected to iterate every year, taking advantage of annual price drops on components for the $99 Android console.

"As it relates to iterating the console and refreshes, our strategy is very much similar to the mobile strategy. There will be a new Ouya every year," Ouya CEO Julie Uhrman told us at DICE today. "There will be an Ouya 2 and an Ouya 3. We'll take advantage of faster, better processors, take advantage of prices falling. So if we can get more than 8GB of Flash in our box, we will. And in so doing, make sure that all games are backwards compatible."

Regarding the specs of the Ouya 1, she said, "We're launching on the Tegra 3. It's a quad-core A9 chip. Because it's not a mobile device, we don't have to balance power for battery life. So when all four quads are running, it's 1.6GHz. It's gonna be the best Tegra 3 device on the market."

Games will be tied to a user's Ouya account, so even if customers upgrade annually, the plan is for them to own their content from one console to the next. Ouya also announced earlier today a partnership with Double Fine Productions and Words With Friends creator Paul Bettner. The Ouya console will be available in June.

This article was originally published on Joystiq.