Sure, because output.txt is a text file.
Once it has been created it is a text file like any other.
File redirection is a feature of the operating system's command line interface, not a feature of Java. File redirection can be used with any program that writes to the monitor. For example, the DOS command DIR writes a summary of the files in a directory to the monitor:
C:\temp>dir
Volume in drive C is DISK4_VOL1
Volume Serial Number is 1C25-5670
Directory of C:\temp
01/09/2006 07:29p <DIR> .
01/09/2006 07:29p <DIR> ..
01/09/2006 07:29p 115 Hello.java
1 File(s) 115 bytes
2 Dir(s) 30,987,882,496 bytes free
C:\temp>
You can send the same characters to a file by doing this:
C:\temp>dir > dirlist.txt
You can type out the contents of the new file by doing this:
C:\temp>type dirlist.txt
The same characters as the first DIR command wrote will be written out. Similar commands work for Unix or for Max OS X.
If there already is a file named stuff.txt, what happens if you do:
C:\temp>java myProgram > stuff.txt