US music and media distributor Alliance Entertainment has announced the acquisition of video game rental service GameFly for an undisclosed sum. GameFly will continue to operate as an independent subsidiary within the Alliance group, with additional enhancements to its subscription services planned in the coming months such as an expansion of titles and hardware. The acquisition comes shortly before the launch of the next-generation Sony PlayStation 5 and Microsoft Xbox X consoles. According to GameFly, a “handful” of redundancies were enforced as a result of the acquisition, though no further layoffs are anticipated for the foreseeable future.
Alliance Entertainment Co-Owner and CEO Jeff Walker wrote, “We’re intensely focused on listening to what our customers are telling us, and then finding ways to give them what they are asking for. Alliance is the largest distributor of physical media in the US, and we’re using our expertise with GameFly’s nearly 20 years of experience in subscription game rentals to imagine new offerings that previously were not doable.”