Ouya, the miniature game-console maker that has struggled to gain traction since its record-breaking Kickstarter campaign, has received a new injection of capital from a powerful strategic partner.
According to a report by Wall Street Journal, E-commerce giant Alibaba invested $10 million in the Santa Monica based company last month. The two companies have discussed a plan to incorporate Ouya’s software and library of more than 1000 games into Alibaba’s set-top box.
This investment could boost the fast sinking console’s life and entry into Chinese market, where recently the ban was lifted on video game consoles after 14 years. Microsoft released Xbox One in September last year and Sony’s release of PS4 was delayed recently in the ‘land of the dragon’.
But Ouya suffered from poor reviews and had a difficult time making inroads in a US market already dominated by Microsoft and Sony. It has also competed with a growing number of cheap video-streaming devices such as Amazon’s Fire TV, which hook into app stores loaded with games.
But the company still sees big opportunity overseas — and has no problem letting other companies handle the hardware side. It’s already partnered with Madcatz and Xiaomi (in China) to bring its platform and games to new devices through Ouya Everywhere. Alibaba too is interested in entering the gaming market invested a roughly 10 per cent stake in US mobile-game company Kabam for $120 million to distribute its games through Alibaba mobile apps in China last year.
The original Kickstarter campaign for the Ouya concluded with $8.6 million in crowdfunding. The company went on to secure an additional $15 million through venture capital funding in 2013. The console officially went on sale for $99 in 2013, but it has failed to gather much attention.
