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Russobit-M and Game Factory Interactive Set to Merge

by Rainier on May 20, 2008 @ 5:03 a.m. PDT

Russian based publisher/developers Russobit-M and Game Factory Interactive have started a merger process, that will result in a holding with an annual revenue of over $45 mln and staff more than 350 people, aiming an active development of new market segments, like online, console and casual games in first turn.

According to Irina Mizrakhi, «Russobit-M» President, the main reason for merger is the wish to enter and develop the MMORPG (massive multiplayer online role playing games), console and casual games market segments, which are both new to the companies. Alongside with this, the holding intends in forcing PC games digital distribution. The company has good prospects in this area, as it was the first to open Game-on-Demand service on and is now the segment leader.

Specially created BestWay company will become the managing company of the newborn holding but so far the companies remain relatively independent. The reason for this is a totally different inner structure, bringing together ‘strict vertical’ of Russobit-M and a network of small independent GFI subsidiaries.

‘The consolidation alike will result in a positive synergetic effect, allowing its members to cut down expenses on games promotion, for example ’ – says iKS-Consulting analyst Yelena Krylova.

In 2007 the total share of the Russian PC games market was estimated $430-450 mln, including about $60 mln for MMOG share and $10-15 mln for casual games share. Several years running the game market is showing strong growth up to 100% a year. According to the experts’ opinion, the market is not divided yet, and it is relatively easy to enter it.

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