U.S video game service Ouya seems to look at Asia to capture the growth through a partnership with Chinese smartphone maker Xiaomi, Reuters reports. The move would help Ouya take its games to Chinese living rooms via the smartphone maker's new streaming boxes and smart TVs.

Within three years, Xiaomi became China's top smartphone seller ahead of Apple Inc and Samsung Last year, it expanded into the TV and set-top box business with its "MiBox" and "MiTV."

Ouya began selling a $99 game console based on Android software last year. But sales were disappointing.

Ouya are designed to work on TV sets with controllers, similar to the Xbox and Playstation. Ouya and Xiaomi are discussing launch titles and marketing now, Uhrman added.

In related news, Xiaomi is reported to have ordered sapphire covers from South Korean manufacturers. The covers will be used in a a limited edition premium smartphone that may launch as early as the year-end, South Korea's Electronic Times reported on Friday.

Xiaomi declined to comment.

Sapphire is more durable and scratch-resistant than typical glass display covers. Apple is considering using sapphire screens in more expensive models of its new, larger iPhones.