Ouya, a Santa Monica video game console creator, received a $10 million investment from Alibaba last month, according the Wall Street Journal.
The two companies are reportedly in discussions to bring Ouya’s software and more than 1,000 of its games to Alibaba’s set-top box.
Ouya recently refocused its attention to licensing its massive game library due to poor console sales, which remained lackluster since the startup launched with much touted Kickstarter campaign in 2012.
In what was crowdfunding site’s largest project to date at the time, Ouya brought in $8.6 million. It began selling its $99 game console in stores such as Target and Best Buy in 2013, but the Android-powered system never took off domestically due to poor reviews and stiff competition.
Ouya was also said to be in early acquisition talks last September with several Chinese and American companies, including Xiaomi, Tencent, Google and Amazon. China lifted a 14-year ban on foreign game consoles last January, prompting developers to scramble to break into the country’s $14 billion video game market.
An Ouya spokesman declined to comment. Representatives of Alibaba could not be reached.
Staff reporter Melissah Yang can be reached at [email protected]. Follow her on Twitter @MelissahYang for the latest in L.A. tech news.