Report: IGN selling off Direct2Drive to Gamefly

One of the biggest PC game download stores may be sold off by its current owner, if Internet reports are correct. The MCV web site reports via unnamed sources that IGN Entertainment is in the process of selling off its Direct2Drive service to GameFly, best known for their monthly subscription service of offering console games via the mail (similar to Netflix's DVD and Blu-Ray mail service). The story claims that the deal between IGN and GameFly is "almost complete" and will be officially announced next week. There's no word on how much GameFly is paying for the Direct2Drive service.

If this deal does indeed go through it will be just the latest chapter in IGN's development. Earlier in May it announced that it had acquired UGO.com from the Hearts Corporation. That purchase included the popular game web site 1Up.com. Rumors are that IGN Entertainment is setting itself up to be spun off from its parent company News Corporation in the coming months. As far as GameFly, it has also been expanding beyond its most well known business. It bought the Shacknews gaming news web site in 2009 which also added a file download site to its business. In February 2010, GameFly filed with the SEC for an IPO but so far the public stock offering has yet to launch.

This latest deal, if true, follows up on last March's announcement by Stardock (a minority owner in Neowin.net) that it will sell off its Impulse PC game download store business to GameStop. That transaction has since been completed.

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7 Comments

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ccoltmanm said,
As much as I love Steam, it needs competition. Direct2Drive just wasn't user friendly enough.

Does it need competition? - The prices on it are high yes but Valve aren't the ones setting those prices the publishers are and if the publisher is going to charge $39.99 for a PC game on Steam they are going to charge $39.99 on Direct2Drive and Impulse too.

Steam the software works great is easy to use and has all the features I need and want. The only real 'issue' is that its prices are higher than buying the same games in-store. For example I can get a boxed title from Amazon for £8-10 while the same game on steam is £25-£30. The main reason for that is Amazon actually has physical shelves and stock that doesn't sell costs them in shelf space while Valve has no such issue and the publishers are going to try to get the most out of their titles.

Competition from other digital stores will do nothing but fragment users and result in a lesser experience for us all while keeping the prices the same anyway.

actualy this is kinda misleading latley i have been buying games from d2d for much cheaper then steam. its realy nice on preorders when you get the preorder price reduction then another 15% off on top of that for being a fileplanet sub. i think durrring a promo i got my copy of rage id new game for 34 bucks

actualy this is kinda misleading latley i have been buying games from d2d for much cheaper then steam. its realy nice on preorders when you get the preorder price reduction then another 15% off on top of that for being a fileplanet sub. i think durrring a promo i got my copy of rage id new game for 34 bucks

I was never a fan of D2D, kinda glad IGN is getting rid of it, it fits GameFly's business model a little better.