Alibaba Makes Heavy Investment in Ouya

Ouya, the game-console maker made famous by its kickstarter campaign, has recently received $10 million from online shopping titan Alibaba. There have been discussions about incorporating Ouya’s software and 1,000 game library into Alibaba’s set-top box.

The primary location where Ouya can flourish is in China, which is poised to be the next battleground for video game competition now that the 15 year-long ban on videogame consoles has been lifted. Although Ouya seemed to be off to a great start in 2012 with an explosion of funding, the results are less than expected, mostly due to the powerful hold on the market that Sony and Microsoft have and the recent emergence of the Nexus Player and Fire TV, which both allow for similar cheap gaming. However, a struggling company and a burgeoning market can be perfect for each other if there is a way for them to connect. Enter Alibaba. If there is any place that Alibaba knows, it’s China. Alibaba can be extremely helpful to Ouya as it tries to move into China’s market.

Ouya is no stranger to deals with other companies, and has also been working out some mutually beneficial agreements with Xiaomi as well.

Source: WSJ

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