GameStop acquires Kongregate

Kongregate, a popular social gaming website, is set to be acquired by game retailer GameStop. Kongregate, created in June 2006 by sister and brother Emily and Jim Greer, is a website that allows users to upload games they have created with Adobe Flash. Around 10 million gamers spend 23 million hours on the website.

Chief Executive Officer of GameStop, J. Paul Raines, talked about the positives that come from the move.

Kongregate advances GameStop’s digital strategy by providing a gaming platform for casual, mobile and browser games that can be promoted and played by our existing gamers. We welcome the Kongregate team to the GameStop family.

GameStop President, Tony Bartel, chimed in about the acquisition.

Combining Kongregate’s expansive catalogue of games with our well known consumer brand, powerful marketing and strong customer relationships, means that even more gamers will be able to enjoy their games anytime, anywhere and on any device.

Kongregate will most definitely benefit from the acquisition by GameStop. Kongregate co-founders Jim and Emily Greer will continue to manage the site, and the company will keep its San Francisco offices, as Kongregate becomes a wholly-owned subsidiary of GameStop. The website will reach more gamers being a subsidiary of GameStop. But how will GameStop benefit?

The company seems to be on a mission to be the gaming collective of choice for gamers surfing the web. GameStop has been building its presence in the world of digital distribution of games as well as trying to build a revenue stream out of digital distribution. Using Kongregate to expand its marketing reach is a smart move on GameStop’s part.

As time goes on, digital seems to gain steam as a medium. GameStop has to adapt to the changing landscape of gaming. GameStop, a US video game retail giant, is looking to catch up with the growth of digital business.

What do you think about GameStop’s acquisition of Kongregate?

Source: CVG