Ouya signed a deal with Chinese electronics giant Xiaomi last month to bring their Android-based games to Chinese living rooms. Apparently Ouya likes it in China as the latest rumor out of Re/code claims the company has engaged in preliminary acquisition talks with several big players in the country.

To be fair, the publication also points out that Ouya has had some engagement with Amazon and Google stateside. Overseas, Ouya has reportedly been talking with Xiaomi, Tencent and a few other unnamed companies.

A Chinese acquisition could make a lot of sense considering the company recently lifted its ban on consoles, a ban that had been in place since 2000. That said, sources say the acquisition would be more for talent than Ouya's existing Android-based gaming console. Such news isn't all that surprising considering Ouya's console hasn't found much traction among US-based gamers.

Ouya raised nearly $8.6 million from more than 63,000 backers on crowdfunding website Kickstarter in the summer of 2012. The console finally shipped to the general public a year later priced at $99. The problem wasn't so much with the console itself but with the games that developers put out. Specifically, Android-based titles simply couldn't compete with big-budget games on mainstream consoles from Microsoft, Nintendo and Sony.

Sources note that the talks are still in early stages but Ouya sees it as a more likely option instead of trying to push forward and raise more money. At present, there aren't any offers on the table, sources said.