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System-on-chip used ---Nvidia Tegra 3
CPU -------------------1.7 GHz Quad-Core ARM Cortex-A9
Storage capacity --------8 GB internal flash memory
Memory----------------1 GB RAM
Display-----------------HDMI 1080p 720p
Graphics----------------Nvidia ULP GeForce

Looking at the numbers it seems to be way more powerful then the Wii. I'm not really sure how an ARM Cortex-A9 CPU @1.7GHz x 4 cores compares to a single core PPC CPU at 730MHz, but I would assume favorably.

I've seen the Tegra3 do good things & of course 1GB of RAM is way more then the Wii.

HDMI output in HD sounds good, but we don't know what resolution the Ouya renders games at, so wait and see there.

An educated guess from looking at what we know would say it should be Wii like, but with shaders, real-time shadows, higher then 480p resolution & if they can make anti aliasing happen games should look much better.

This screen isn't from the Ouya, but shows a game that is coming to it.