US-based games console manufacturer Ouya, backed by chip maker Nvidia and e-commerce company Alibaba, may be acquired by gaming technology developer Razer, TechCrunch reported yesterday.
Talks between the two companies are ongoing, and no terms have been announced yet.
Ouya has developed a games console based on the operating system Android. Although it is cheaper ($99) than competing consoles Microsoft Xbox One ($349) and Sony PS4 ($399), Ouya struggled to secure market share and recently focused on licensing its games for devices popular outside the US.
In January 2015, Alibaba provided a $10m series B round. Nvidia, Kleiner Perkins Caufield and Byers, Mayfield Fund, Shasta Ventures, and Occam Partners contributed to a $15m series A round in 2013.
The company originally launched with a crowdfunding campaign in 2012, which Ouya hoped would secure $950,000 but eventually raised $8.6m.