Playtech Continue To Target Social Gaming Market With YoYo Games Acquisition
The world of real money gaming and social gaming are closer than ever before. Whether it be free-to-play casino based games or your Candy Crush, the bottom line is with mobile devices available for just about everyone, there are billions of dollars at stake for developers who come up with the next hit.
The social gaming market has caught the eye of real money gaming companies as well as online software providers like Playtech. Many so called gamblers would not necessarily know the name Playtech but they are responsible for providing software for some of the largest casinos in the world. In fact their founder Tedi Sagi has been blamed for the fixed odds betting terminal problem in the UK. Dubbed the “crack cocaine of the gambling” the FOBTs are powered mostly by software developed by Playtech.
Playtech like so many other traditional gaming companies are looking to expand into softer areas of gaming where the potential to is huge to attract different audiences. It is for this reason that they have their own existing subsidiary Plamee which was established in 2014. They are responsible for developing games across all the popular platforms including iOS, Android and Facebook. They already employ over 100 people with many of them leading experts in the social gaming world.
Playtech’s latest strategic purchase aimed at expanding their social gaming presence is their acquisition of the Scottish gaming company YoYo Games. The deal is set to be worth $16.4 million with potentially an extra $5.25 million expected depending on business targets and retention plans.
YoYo Games offer their own unique popular cross-platform game developer tool called GameMaker Studio (GMS).This platform offers developers a single programming code that enable them to create and publish games on various platforms. There are already over 750,000 registered developers who use the platform and there have been over 5 million downloads of products that utilized the platforms including iOS, Android, Xbox, PlayStation and Windows 8.
Playtech plan on adopting a multi-pronged strategy to establish a presence in the casual gaming sector. This includes Plamee, internal and external publishing and their new casual gaming technology that will enable them to increase the titles using the GMS solution.
A spokesperson for Playtech commented on the new acquisition,” The YoYo acquisition represents Playtech’s first acquisition into the casual gaming space. This has been a key strategic area for us, and the YoYo acquisition will complement our own existing Plamee business well.” According to Playtech the YoYo team in Dundee of 50 employees will remain in place as they have a history of keeping the acquired teams.