Gamefly Has Purchased Direct2Drive From IGN

How time flies! Why it seems like only yesterday we brought you news that video game rental service Gamefly won a serious victory against the US Postal Service for providing preferential treatment to competitors. That victory was vindication for several years of being over-billed for shipments to their customers, and the ruling in Gamefly’s favor will no doubt save them a ton of money. Definitely a reason to celebrate, and Gamefly decided to do so by makin’ it rain! Today, they’ve confirmed that they’ve purchased Steam competitor, gaming download service Direct2Drive from IGN.

This probably makes Gamefly the undisputed world heavyweight champion of online access to video game (rentals + purchase), but fear not, Direct2Drive customers – Gamefly insists that you’ll be able to enjoy IGN membership discounts and the refer-a-friend program after the sale is finalized. Of course, this is going to have to go before the FTC for approval and lord knows they’ve lately been very serious about ensuring that monopolistic business practices aren’t encourageahahahahahahahahah. Oh, me. I’m kidding, of course this will be stamped without oversight. Direct2Drive customers, welcome to the Gamefly posse.

Since we know how much you love this kind of thing, here’s the complete press release:


LOS ANGELES, MAY 25, 2011 – GameFly, Inc., the leading online video game rental subscription service, today announced the acquisition of IGN Entertainment’s (D2D), a leader in digital distribution of video games. D2D, the popular digital retailer, will continue providing more than 3,000 PC and Mac titles for gamers to purchase and download digitally. As part of the transaction, IGN will gain a minority equity stake in GameFly, but will play no direct role in GameFly’s operations or governance. News Corporation will take an observer seat on GameFly’s board.

“We’re very excited to bring the D2D team onboard at GameFly and expand our ability to deliver games to consumers,” said David Hodess, CEO of GameFly. “Only GameFly can offer a complete library of physical and digital games for the PC, Mac and consoles in one place.”
“GameFly has been an innovator in the video games industry, and it continues to evolve with the expansion of its digital offering. We’re excited to continue working and partnering with GameFly moving forward,” said Jorge Espinel, EVP of Strategy and Corporate Development for News Corp. Digital Media Group and GameFly’s board observer.

Terms of the deal are not disclosed.

About IGN Entertainment
IGN Entertainment is the leading Internet media and services provider focused on the video game and entertainment enthusiast markets. Collectively, IGN’s properties reached more than 70 million unique users worldwide in February 2011, according to Internet audience measurement firm comScore. IGN’s network of video game-related properties (,, GameSpy, FilePlanet, TeamXbox and others) is the Web’s leading video game information destination. IGN also owns the leading men’s lifestyle website, as well as men’s entertainment site, and provides technology for online game play in video games. IGN is headquartered in the San Francisco Bay Area, with offices across North America, Europe and Australia.

About GameFly. Inc.
GameFly, the leading online video game rental subscription service, allows subscribers to rent one or more video games concurrently, with no due dates, late fees or shipping charges for a fixed monthly fee starting at $15.95 a month. Subscribers select titles and manage their GameQ online from the GameFly website at or from its GameFly mobile application for iOS, Android and Palm devices. Users receive games via First-Class Mail and return them to GameFly at their convenience using prepaid mailers. In addition to selling video games through the “Keep” feature, GameFly also sells new and used video games to subscribers and others through the website. To complement GameFly’s subscription service and video game sales, the company operates a network of advertising-supported websites that provide video game content and information under the GameFly Media brand.

Via Joystiq

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