Amazon.com Inc. (AMZN - Analyst Report) recently announced the acquisition of Double Helix Games, a game studio. The news follows rumors of the online retailer’s plans to launch an Android-powered game console later this year. However, the details and financial terms of the deal have not been disclosed by either of the parties.
Double Helix Games is an independent games studio formed through the merger of The Collective, Inc. and Shiny Entertainment. It’s most popular release to date is Killer Instinct for Microsoft Corp’s (MSFT - Analyst Report) Xbox One. It is currently working on Strider, which is likely to be launched on PS3 this month.
Amazon plans to absorb roughly 75 employees of Double Helix Games.
Rumor has it that Amazon, the world’s largest online retailer, is set to enter the video game console market dominated by existing consoles such as Sony Corporation’s PS4, Microsoft’s Xbox One and Nintendo’s Wii U.
Thus, the latest move is expected to strengthen its efforts to set foot in the gaming space. The acquisition will also bring in eminent talent and IP to Amazon.
Amazon introduced a game studio in 2012 that focuses on creating innovative, fun and well-crafted games. It has released several games including Living Classics for Facebook Inc. (FB - Analyst Report) and Air Patriots for Google Inc.’s (GOOG) Play store. It has been building its game development staff and listing openings for numerous programming and engineering jobs.
Also, Amazon primarily sells hardware with the intention of creating a platform for media sales. Therefore, this acquisition will help it in building an innovative product, which would in turn boost its media revenues going forward.
Currently, Amazon carries a Zacks Rank #4 (Sell).