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Electronic Arts Acquires Cloud Gaming Technology Assets & Personnel of GameFly’s Subsidiary

This is not investment advice. The author has no position in any of the stocks mentioned. WCCF TECH INC has a disclosure and ethics policy.

Electronic Arts (NASDAQ:EAannounced the acquisition (closed this month) of GameFly's wholly owned subsidiary cloud gaming technology assets and personnel.

The team based in Caesarea, Israel, will now join EA's central technology organization responsible for developing and operating the platform that powers Electronic Arts games and services.

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Ken Moss, Chief Technology Officer of Electronic Arts, said:

Cloud gaming is an exciting frontier that will help us to give even more players the ability to experience games on any device from anywhere. We’re thrilled to bring this talented team’s expertise into Electronic Arts as we continue to innovate and expand the future of games and play.

The press release notes that cloud gaming opens up the possibility to expand the reach of games via streaming to more players, devices and regions of the world.

With the acquisition of GameFly's subsidiary, Electronic Arts is thus strengthening its strategy focus on technologies that allow players to access the games however they want while enabling the delivering of next-generation experiences at scale.

It is unclear what that means for the future of GameFly. As a reminder, the company's streaming offer allows customers to play the games directly on Smart TVs like Amazon Fire TV, Samsung Smart TV, LG Smart TV, Philips Smart TV, and EMTEC. At that point, they only need a game controller (such as Sony's DualShock 4 controller or Microsoft's Xbox 360/Xbox One controllers) and obviously a minimum stable bandwidth of 5 Mbps (though 10 Mbps or higher guarantees the optimal experience). Both wired and wireless connections are supported, though wired is preferable whenever possible; those who have no choice but use a wireless connection should try and use a 5 GHz router.

There are also free game trials available after you've downloaded the free application on your Smart TV, so you can check out the streaming quality with your setup.