The low-cost Ouya game console got a big start a few years back when it raised more than $8 million on Kickstarter. When the console actually came out in mid-2013, the results were less than impressive. Ouya has gone through a number of changes since then, but now Recode is reporting that it has entered acquisition talks with a number of companies in the US and China.

Ouya reportedly feels cashing out is a better option than raising additional money to continue on its own. Despite luring in some top developers and doing away with the free-to-try requirement for games, Ouya has failed to catch on. Ouya even tried shifting from a single hardware spec to a platform that could be loaded onto devices like the MadCatz console and smart TVs

Talks are still in the early stages, but Ouya is said to be engaging with Chinese firms like Xiaomi and Tencent. In the US, Google and Amazon have been talking about a deal with Ouya. A Chinese purchase seems much more likely, though. Xiaomi in particular would make a good home for Ouya as it has already committed to including the Ouya software with its smart TVs. An Android gaming system that doesn't rely on Google services also makes a ton of sense in the Chinese market. Ouya wouldn't add anything substantial to Google's or Amazon's gaming efforts.

[Recode]