According to Re/Code's sources, the talks are still quite early, and the acquisition would revolve around employee talent more than the console itself, which didn't quite live up to the huge hype that it generated after raising $8.5 million on Kickstarter. The $99 console went on sale a little over a year ago, but people weren't dazzled by its game selection.
China just lifted a 14-year ban on gaming consoles in January, so Chinese companies can now start making their own devices. An Ouya acquisition could help get efforts to enter the console space rolling. This report comes hot on the heels of the news that Xiaomi closed a deal with Ouya to offer its games on Xiaomi's TV streaming boxes.
Business Insider has reached out to Ouya for comment.