Ouya is betting on its video game library, rather than its game console, to resonate with gamers in newly opened Asian markets.
The Santa Monica startup launched in 2012 after raising $8.6 million via a Kickstarter campaign, one of the crowdfunding site’s largest, to produce a video game console that was supported by an open marketplace where independent developers could directly put their games into players’ hands.
But instead of selling its $99 console in China, which last year lifted a 14-year ban on foreign game consoles, Ouya has pivoted its strategy to focus on distributing its 1,000-plus game library through partners overseas.
Ouya in August joined forces with Xiaomi, China’s biggest smartphone seller that launched its first set top box MiBox and smart TV MiTV last year. And that’s why Ouya has added another major Chinese partner, confirming Monday it received an investment from e-commerce giant Alibaba Group. The deal will link the two companies by bringing Ouya’s game library to Alibaba’s Tmall set top box. Julie Urhman, the chief executive of Ouya, declined to disclose Alibaba’s total investment. Earlier reports had pinned the funding at $10 million.
“The companies in China have really strong brand recognition and really strong relationships with customers,” Urhman said. “It’s better for us to partner with Alibaba or Xiaomi than bring our console to market.”
Ouya hasn’t abandoned its console though, at least not for U.S. gamers. Despite launching to underwhelming reviews and reports of buggy performance, the Ouya console sold out in the domestic market last quarter, according to Urhman.
She declined to say what percent of Ouya’s revenue came from its games versus console sales, but said Asia is where growth’s to be had, particularly in China. There are also plans for Ouya to expand into markets in India and Latin America.
“China is just a really exciting market opportunity and maybe more exciting than the U.S. really from the perspective that it’s new,” she said. “There are no established players in the space.”
Staff reporter Melissah Yang can be reached at [email protected]. Follow her on Twitter @MelissahYang for the latest in L.A. tech news.
