Ngmoco Raises $25 Million to Buy Freeverse

In an attempt to build Ngmoco into a company so large that it can stand above the competition, Ngmoco has raised a large amount of venture capital. They’ve also begun acquisitions of the game Charadium and the entire company of Freeverse.

Overall they have now raised $40.6 million from several investors in order to massively beef up their portfolio.

It is reported that Ngmoco plans to make all of Freeverse’s products, including the very popular Skee-Ball and Flick Fishing, free to play and supporting their cost with in-app purchases. We heard last week that the freemium business model was going to be a big push for Ngmoco, but clearly this is a company-wide philosophy that they really believe in.

Ngmoco’s CEO, Neil Young, laid out a seemingly compelling case for the switch recently, saying, “On any given day, you have about 2% of your audience paying you money,” adding that Touch Pets Dogs recently had its best weekend yet.

In an interview with Touch Arcade Young said that functionally Freeverse will remain identical for the time being, and that the average user won’t really notice the difference. He also adds that upcoming Freeverse games will not be affected by the buyout, and will be released as scheduled.

Ngmoco is planning a huge year for 2010, with plans to release 20 games, and they expect Freeverse to publish about the same amount. With that kind of quantity, it won’t be very long before we know for sure how well the freemium strategy is working for them.

[via TechCrunch]

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