There has been a lot of consolidation in the social gaming space lately. EA Sports acquired Playfish last year for $400 million and earlier this week, Farmville developers Zynga acquired a smaller gaming firm, Serious Business for an undisclosed amount.
The transaction in all these cases is mutually win-win. While social gaming as a concept has grown by leaps and bounds in the past one year with more growth possible in the near future, this is also a high capital business requiring lots of resources. No wonder then that the investors are willing to sell out at the first opportunity for an exit.
Happy Aquarium is the fourth in the list of the most popular games on Facebook. By acquiring CrowdStar, there is a possible synergy that Microsoft may find between the web based social games and console based gaming on Xbox. If it works out fine, Microsoft can soon be the biggest force to reckon with in the gaming arena.[via Bloomberg]