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Machine Zone

Winter 2008Acquired

Pioneers of mobile social gaming.

Save
Machine Zone logo

Machine Zone

Winter 2008Acquired

Pioneers of mobile social gaming.

Save
Company details

Live data powers everything we do—from our global, multiplayer mobile games to our mobile ad buying to our live data ecosystem, Satori. MZ is creating new futures for people, enterprises, cities, and countries. The possibilities are endless.

Location
San Francisco, CA, USA; Palo Alto, CA, USA
Founded
2008
Category
Gaming
YC profilewww.mz.com
Founders
  • GL
    Gabriel Leydon
    Founder/CEO
  • HN
    Halbert Nakagawa
    Founder/CTO
  • MS
    Mike Sherrill
    Founder
    LinkedIn

Live data powers everything we do—from our global, multiplayer mobile games to our mobile ad buying to our live data ecosystem, Satori. MZ is creating new futures for people, enterprises, cities, and countries. The possibilities are endless.

Location
San Francisco, CA, USA; Palo Alto, CA, USA
Founded
2008
Category
Gaming
YC profilewww.mz.com
Founders
  • GL
    Gabriel Leydon
    Founder/CEO
  • HN
    Halbert Nakagawa
    Founder/CTO
  • MS
    Mike Sherrill
    Founder
    LinkedIn

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On this page
  • Overview
  • Founding Story
  • Timeline
  • What They Built
  • Market Position
  • Business Model
  • Post-Mortem
  • Key Lessons
  • Sources

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Machine Zone (W08) at a glance

  1. Progress can be a distribution target. Snipp’s Verizon promotion rewarded reaching HQ Level 6, linking acquisition to onboarding. Measure the retained behavior and cost, not installs alone. Case
  2. Shared technology still needs a customer. Dumont attributed the platform detour to unclear direction outside games. Infrastructure reuse does not supply market focus. Interview
  3. Purchase prices need recipients and periods. The 2020 consideration largely settled lenders; partial-year revenue and pretax loss describe different economics from investor proceeds. Filing
  4. Buyer strategy can change. AppLovin added midcore games in 2020, then sold its ten-studio portfolio to Tripledot in 2025. Strategic fit is time-dependent. Closing

Overview

Machine Zone built persistent mobile strategy worlds where players accumulated resources, joined alliances and competed over time. Game of War: Fire Age launched in 2013, Mobile Strike in 2015, and Final Fantasy XV: A New Empire in 2017. Its technology also supported a separate live-data platform, Satori. Company history Satori launch

The company’s trajectory includes expansion beyond games, a return to gaming, and two changes of ownership. AppLovin acquired it in May 2020. Machine Zone then moved to Tripledot with nine other studios on June 30, 2025. The latest verified buyer account describes a smaller team supporting legacy games. 2020 filing 2025 closing Buyer interview

Mobile Strike promotion offering Verizon subscribers 100 MB of data after reaching HQ Level 6
Snipp’s archived Mobile Strike promotion connects a Verizon data reward to an in-game milestone. Source: Snipp case study.

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Founding Story

Founded in 2008, Machine Zone participated in YC’s Winter 2008 batch. YC names Gabriel Leydon, Halbert Nakagawa and Mike Sherrill as founders. Its company description connects global multiplayer games, mobile ad buying and the Satori ecosystem through live data. These are distinct uses of a shared technical capability. YC profile

The documented product idea was a persistent multiplayer world that players could carry on their phones. Kingdoms and alliances gave earlier actions lasting consequences. A player’s progress depended partly on other people, making coordination part of the experience. That design required both reliable real-time operation and enough active participants to sustain competition. The company’s current games page describes building kingdoms and forging alliances; it does not establish current player counts. Games

Timeline

  • 2008: Founded; YC Winter 2008. YC
  • 2013–2015: Game of War and Mobile Strike established the company’s fantasy and military strategy franchises. History
  • June 28, 2017: MZ and its Epic Action studio launched A New Empire with Square Enix. Joint launch
  • July 11, 2017: Satori announced free developer services for publishing, discovering and reacting to streaming data. Release
  • June 2018: Kristen Dumont replaced Leydon as CEO, according to her subsequent interview. Interview
  • May 19, 2020: AppLovin acquired Machine Zone and settled its debt. Filing
  • End of 2024: A New Empire went offline, according to PocketGamer’s later report. Report
  • June 30, 2025: AppLovin completed the sale of ten studios, including Machine Zone, to Tripledot. Closing

What They Built

The games combined long-term progression with alliance coordination and repeated competition. Different settings reused that operating model. The Square Enix partnership added a recognized fictional universe: Epic Action developed A New Empire with Square Enix designers and developers. The joint announcement explicitly connected its gameplay to the real-time strategy technology behind the earlier games. Licensing expanded the audience proposition while retaining a demanding multiplayer system. Launch

Distribution extended beyond app-store listings. Advertising records document Kate Upton’s 2015 Super Bowl campaign, Mariah Carey’s Hero spot, and Arnold Schwarzenegger’s Mobile Strike campaigns. These establish the creative partnerships; they do not isolate their effect on retention or profit. Campaign catalog Carey spot Schwarzenegger spot

Snipp documents another route into the game. Verizon subscribers entered a mobile number, downloaded Mobile Strike and reached HQ Level 6 to receive 100 MB of data. The reward depended on progress, rather than installation alone. That mechanism made onboarding completion a distribution objective. Snipp provides no results that establish its cost or commercial success. Case study

Satori attempted to sell the underlying technical capability to a broader developer audience. Its 2017 release offered live messaging, discovery and reactions as managed services. Technical reuse was real; demand in another industry still needed a separate product and customer strategy. Satori

Market Position

Machine Zone’s games served players who valued persistent competitive worlds and social coordination. This customer interpretation follows the documented mechanics; it is not a disclosed segmentation study. Contemporary reporting described Game of War as top-grossing. Rankings establish spending scale, but reveal little about net margins or the durability of individual cohorts. Games 2015 reporting

AppLovin described the acquisition as adding midcore games to its casual portfolio. That is a dated buyer rationale, not evidence that portfolio breadth solved every operating problem. Its later disposal of the entire games business shows how the parent’s strategy changed. IPO prospectus 2025 closing

For a modern alliance-operations product, generic analytics is already supplied. GameAnalytics documents cohorts, retention and event exploration. Microsoft’s PlayFab documentation covers reporting, segmentation, experiments and data connections. A new tool must prove an advantage in decisions and follow-through, rather than assume those platforms lack telemetry. GameAnalytics PlayFab

Business Model

Free-to-play games allowed entry without an upfront purchase, then monetized an ongoing player relationship. Paid distribution and promotional partnerships brought people into worlds whose usefulness depended on continued participation. Public evidence does not establish Machine Zone’s payer mix, lifetime value, acquisition cost or title-level margins.

AppLovin’s acquisition accounting gives firmer financial context. The $328.6 million aggregate price included $287.1 million cash paid to lenders, $38.2 million in warrants to lenders and preferred stockholders, and a $3.3 million receivable settlement. Its filing reports Machine Zone revenue of $113.8 million and a pretax loss of $89.7 million from May 19 through December 31, 2020. Those partial-year consolidated results cannot establish lifetime profitability or investor returns. 2021 annual filing

The 2025 consideration was $400 million cash, subject to adjustments, plus approximately 20% of Tripledot’s fully diluted equity. It covered AppLovin’s whole ten-studio games business. No Machine Zone-specific resale price is disclosed in that announcement. Closing

Post-Mortem

In her November 2018 Fast Company interview, Dumont described a platform expansion without a clear category outside gaming, confusion inside the company, and an aggressive cryptocurrency pivot she opposed. She then focused the studio on games. This is an executive’s attributed explanation of that period, rather than proof that Satori alone caused the later sale. Her account suggests that reusing infrastructure still required choosing customers, allocating staff and maintaining the original products. Interview

The later record shows a reduction in scope. In May 2025, Tripledot CEO Lior Shiff told PocketGamer that the studio had not closed, but its acquired team lacked capacity for new projects. The report describes support for Game of War and Mobile Strike, cancellation of the soft-launched Reign of Vampires, and A New Empire going offline. Those details distinguish the survival of legacy operations from the survival of a broad development program. They remain dated reporting, not a current headcount audit. Interview

As checked in October 2026, the official games page still features Game of War and Mobile Strike. The privacy notice also names those products. Website and policy maintenance support continued public product representation; they do not prove server availability, revenue or new development. The verified transaction places the studio in Tripledot’s portfolio. Neither sale alone establishes product failure. Games Privacy notice Closing

Key Lessons

  • Social coordination creates an operating obligation. Alliances give players reasons to return, while requiring a populated, responsive world.
  • Distribution can target meaningful progress. A reward tied to HQ Level 6 connects promotion to onboarding; its economics still need measurement.
  • Infrastructure reuse needs customer focus. Satori’s technical foundation did not establish a new market. Dumont’s account makes the strategic allocation problem explicit.
  • Ownership and product scope change separately. A studio can remain in a portfolio while particular games close and new-project capacity contracts.
  • Financial labels matter. Purchase consideration, lender proceeds, revenue and pretax loss answer different questions. Keep their periods and recipients visible.

Sources

YC; company history; games; Square Enix launch; Satori launch; Dumont interview; AppLovin annual filing; IPO prospectus; Tripledot closing; Shiff interview; Snipp; iSpot catalog; Carey spot; Schwarzenegger spot; GameAnalytics; PlayFab; privacy notice.