Zynga Acquires Echtra Games to Expand into Immersive Gaming

Zynga, a prominent games company, has significantly increased its acquisition activity in recent years, primarily focusing on mobile and casual-puzzle games. Over $3 billion has been invested in acquiring various startups, particularly in Europe – specifically Turkey and Finland.

Shifting Focus to Cross-Platform Experiences

However, the company is now pivoting towards more engaging, graphically intensive games playable across multiple platforms. Zynga has announced the acquisition of Echtra Games, a San Francisco-based role-playing game publisher.

Echtra Games is the developer behind Torchlight III, which is currently available on Steam, Xbox One, PlayStation 4, and Nintendo Switch.

Collaboration with NaturalMotion Studio

The acquired team will collaborate with Zynga’s NaturalMotion studio to develop a new game title. Details regarding this project remain undisclosed at this time.

The financial specifics of this deal have not been publicly revealed, and information regarding Echtra’s prior funding is currently unavailable.

Echtra Games: A Startup Driven by Passion

Echtra Games exemplifies a gaming startup founded on a strong creative vision, rather than solely on financial projections – a valuable asset for any acquiring company.

Max Schaefer, co-founder and CEO of Echtra Games, previously held a position at Runic Games, the studio responsible for the original Torchlight series, as well as contributions to the Diablo franchise.

Following the closure of Runic Games by its parent company, Perfect World, Schaefer established Echtra Games in 2016 alongside former Runic colleagues. This decision stemmed from his belief in the continued potential of the Torchlight franchise.

Challenges and Future Plans

The launch of Torchlight III did not meet all expectations, receiving mixed reviews. Criticism focused on both the game’s construction and the presence of technical issues.

Zynga intends to leverage Echtra’s team and expertise to potentially further develop the Torchlight franchise. More broadly, the acquisition aims to strengthen Zynga’s presence in the cross-platform gaming market and enhance its gaming technology capabilities.

This includes tools built on Unreal Engine, which is currently the preferred platform for RPGs and other immersive gaming applications.

Statements from Zynga and Echtra

“Max and his team at Echtra Games are responsible for some of the most legendary game properties ever created, and they are experts in the action RPG genre and cross-platform development,” stated Frank Gibeau, CEO of Zynga. “I’m excited to welcome the Echtra Games team into the Zynga family.”

He further added, “This acquisition will be instrumental in growing our iconic licenses and brands from mobile to PCs and consoles, while helping to further expand Zynga’s total addressable market.”

Max Schaefer commented, “Echtra Games is delighted to be joining the Zynga family. We share Zynga’s vision that cross-platform play is an essential part of the future of RPGs and interactive entertainment and are eager to apply our vast experience and talents to this effort.”

The Impact of the Pandemic and Zynga’s Growth

The gaming industry has experienced significant growth in the past year, largely due to increased time spent indoors during the pandemic. Zynga has benefited from this trend, achieving record-breaking financial results.

The company’s fourth-quarter earnings, released last month, exceeded analyst predictions, with revenues reaching $616 million – the highest quarterly bookings in Zynga’s history.

Acquisitions are a key component of Zynga’s overall strategy, as highlighted by company officials.

A Strategic Shift in Acquisition Focus

Expanding into more immersive RPG titles represents a significant departure from Zynga’s recent acquisitions, which have included a majority stake in Rollic ($228 million), Peak ($2.1 billion), 80% of Small Giant Games ($718 million), and Gram Games ($299 million). This new direction is both ambitious and potentially more resource-intensive.

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