January 2, 2014

Two game analytics companies seek to merge

The video game industry stands at an interesting crossroads. Traditional game development is becoming increasingly expensive, yet the retail price of console games is lower than ever when adjusted for inflation. Meanwhile, the rapidly expanding mobile gaming market has been built on a foundation of 99 cent apps that are downloaded millions of times. In short, there is tremendous pressure to keep prices down.

How can game studios hope to profit in this increasingly competitive marketplace? First and foremost, they need to focus on maintaining popularity among their current customers. This is where analytics companies like Playhaven and Kontagent come in.

According to a recent article on TechCrunch, the two companies have announced plans to merge and form a larger organization reportedly worth "hundreds of millions."

Their individual specialties will be crucial to many in the industry. Playhaven uses personalized promotions to help sell games, basing their efforts on specific audiences. They can even determine which groups are the largest spenders when planning pricing.

Meanwhile, Kontagent deals with monetization and has experience working on popular social games that exist on Facebook, such as Farmville.

"With this combination, we'll be the 800 pound gorilla and the clear market leader," Playhaven CEO Andy Yang told the news source. "Our clients were asking us about how they could take all the valuable data they've collected in Kontagent and act on it. We ended up having a shared vision."

Clearly, the market has a need for this sharing of talent. A smooth technology acquisition can often lead to better service, which is why a mergers and acquisitions firm is so important.