Two companies that make educational games and gadgets for kids are expected to merge next month in a deal that will see Chinese firm VTech spend roughly $72 million to acquire California-based LeapFrog Enterprises.
This is chiefly notable because it represents a consolidation in the market for educational games and technology. Both VTech and LeapFrog make toys, games and even dedicated edugame consoles (pictured) designed for children.
Industry watchers will also remember VTech was humbled by a headline-making security breach last year, when a self-described hacker provided the media with purloined VTech files containing sensitive personal information of VTech customers, including nearly 5 million parents -- and over 200,000 children.
It was a significant incident that, according to one Gamasutra blogger, heralded the end of a "Wild West" phase of game design in which game makers, especially those making mobile games aimed at kids, play fast and loose with user privacy.