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Saturday, May 7, 2011

The Conspiracy Continues: News Corp Purchase's UGO

Here we go again, News Corporation is reportedly on the verge to purchase media network UGO, which is currently owned by Hearst Corporation and including the 1UP Network. News Corp plans to spin off IGN as a separate business.

I believe the main-stream gaming media is in bed with developers and console makers. Not too long ago News Corp bought IGN for $650 million in 2005, acquiring a stable of websites including IGN.com, GameSpy.com and TeamXbox.com..

"News Corp. is hoping a spin-off of IGN will accelerate the company's growth by drawing more investment into the business than it could provide on its own, a person familiar with the matter said. News Corp. wants to retain a stake in the company.

IGN has enjoyed rapid growth as gamers have flocked to online gamesite. Traffic in April was up 80% compared with the same month two years earlier, executives said. IGN is expected to make about $10 million on about $100 million in revenue, according to a person familiar with the matter.

Does tainted videogame reviews help increase revenue? Does enraging fanboy's around the world help increase revenue? Does manipulating the virtual airspace with fanboy's propaganda help drive revenue? I believe that the main-stream gaming media is onto something and it's no ponzai scheme.

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