I don't see why Ouya, with it's limited hardware, renders to 1080p. I have serious problems with fillrate. From what little I know, that's not Tegra 3's strongest points. 720p have 56% less pixels and would mean a speed boost for Ouya, while still looking pretty damn good. Actually, the additional speed means games could look even better.
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I use 960*540, that's the point of most efficiency in terms of frame rate and memory bandwidth/fill rate usage for our current title/engine.
I am using App Game Kit so I can't do this myself. But I will talk to the developers about supporting this.
On the AGK frame buffer thing: Can be altered "manually" when you compile your own APK. But I don't have Eclipse set up for compiling the latest version of AGK. And was hoping to avoid Eclipse completely since they offer a much easier way to do it now.
They went 1080p because, for one, the Tegra3 already handles that pretty much automatically AFAIK. For another, developers can just downscale their framebuffer with almost no work at all (in Unity it's a simple one-liner, Screen.SetResolution). It gives developers a choice - some 2D games will work perfectly fine at 1080p, for example, whereas a lot of 3D games might go down to 720p or even as low as 480p for the more fillrate-demanding games.
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So yeah, would be nice to have the option in case your TV incorrectly reports 1080p support (honestly, why on earth would a TV manufacturer do such a thing...? seems shady)