Reuters is reporting that U.S video game service Ouya is working with Xiaomi to expand its business in China.

The news agency reports the California-based firm has partnered with Xiaomi to take its games to Chinese living rooms via the smartphone maker's new streaming boxes and "smart" TVs.

Ouya has over 40,000 developers and more than 900 games on its platform.

Xiaomi became China's top smartphone seller ahead of Apple and Samsung earlier this year.

China is the world's third biggest gaming market, wher revenues grew by more than a third to nearly 14 billion dollars last year.