Video game service Ouya is working with Xiaomi to make its games available in China and gain popularity overseas, something it has been unable to do in the U.S.

The team-up was reported to Reuters by an Ouya executive and a source at Xiaomi close to the agreement, who said the Santa Monica, Calif.-based startup and the Chinese smartphone maker will give people in China the ability to use Xiaomi's smart TVs and streaming boxes to play Ouya's video games in their living rooms, according to Re/code.

Xiaomi has been aiming to get involved in other technologies beside mobile devices, introducing its MiBox and MiTV last year to show its expansion to TVs and set-top boxes.

The new agreement could result in Ouya getting its own channel on Xiaomi's products, CNET reported.

"For the likes of Xiaom's MiTV, its set-top boxes and other Android set-top boxes that are entering the market, this could be a turning point ... in bringing great content and developers to gamers and into a region that they have never had access to before," said Ouya CEO Julie Uhrman.

Having launched through Kickstarter in 2012, Ouya debuted with a $99 console that users could plug into their TVs, and it has since gained thousands of developers that have created hundreds of games. While sales have been weak, the company looks to make up for it with a possible launch in Asia.

Ouya is working with other companies through its "Ouya Everywhere" initiative, which the company started to expand its audience, CNET reported. The initiative includes the company's partnership with video game-focused tablet maker Wikipad, which was announced last month.

More than 900 games are included with Ouya's console, which, like the PlayStation and Xbox, is designed to work with TV sets that have controllers, Re/code reported.

Uhrman said Ouya and Xiaomi are currently discussing marketing and launch titles, and that the two companies will share revenue as part of the deal. She did not share specific details about the discussions.