Computing component producer Nvidia and e-commerce company Alibaba have exited US-based games console manufacturer Ouya after it was acquired by gaming technology Razer for an undisclosed amount in cash, TechCrunch reported yesterday.
The deal was first rumoured last month and has now been revealed to have closed at that time. The acquisition is Razer’s first, and follows an undisclosed amount of funding secured at a $1bn valuation in October 2014.
Launched in 2012 on the back off a crowddfunding campaign that targeted $950,000 but ended up raising $8.6m, Ouya had developed a games console based on the Android mobile operating system.
The console cost $99, a fraction of competing products Microsoft Xbox One ($349) and Sony PS4 ($399), but struggled to secure market share.
Razer has acqui-hired Ouya’s technical and developer relations teams to work on its Android TV gaming system, comprised of the Forge TV console and Cortex gaming platform.
Ouya’s hardware assets however were not included in the deal, and co-founder and CEO Julie Uhrmann will not move to Razer. Its users will be able to continue using its gaming service for 12 months and will be encouraged to migrate to Razer.
Alibaba provided $10m in series B funding for Ouya in January 2015. Nvidia, Kleiner Perkins Caufield & Byers, Mayfield Fund, Shasta Ventures and Occam Partners participated in the company’s $15m series A round in 2013.
All the company’s investors have exited in the deal, but Albaba will continue to work with Ouya post-acquisition.
According to Vice, Ouya has opted not to honour its outstanding commitments made as part of its $1m Free the Games Fund, which it launched in 2013.