GameFly: There Was No Synergy Between PC Games Download and Game-Rental Businesses

Yesterday we reported that GameFly sold the digital distribution platform (Direct2Drive, which was later renamed GameFly Digital) it bought from IGN in 2011 to a company called atGames. Today Dave Hodess – the CEO of GameFly – shed a little light on why the company decided to divest itself of that business.

According to a statement sent to GII, GameFly sold off its PC games distribution platform because – over time – the company said that it didn't have the synergy with its game rental-by-mail business that it had hoped it would.

"GameFly entered the PC download business based on the premise that there would be some synergies between it and our console subscription business. Over time, we determined that these were really separate markets and there was no extra value in a combined offering," said Hodess in a statement to GII.

"We also learned that our expertise was stronger on the console side and decided that it was better to focus on our core skills and market," he added. "Fortunately, there were several companies interested in our PC download business. We were pleased that atGames emerged as the winning bidder because they are prepared to invest behind it and build upon the foundation set by GameFly."

Financial terms of the deal have not been disclosed. atGames will operate the business until later this year. After that the service will either be absorbed into atGames business or rebranded in some way.

The one thing Hodess did not mention is when it sold off video game publication Shacknews. The outlet used to be a wholly owned division of GameFly, but at some point was apparently sold off  in a private sale…

Source: GII

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