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Last week, Seattle-based Mobliss laid off about half of its 20 employees, following a wave of high-profile losses, mocoNews has learned from…

Last week, Seattle-based Mobliss laid off about half of its 20 employees, following a wave of high-profile losses, mocoNews has learned from multiple sources. In the last couple of months, the company lost such hit titles as The Price is Right, Family Feud and Deal or No Deal. Today, Colin Prior, CEO of Reaxion, another Seattle-based game developer, confirmed to us that his company is in discussions to merge with Mobliss, which is owned by Japanese-based Index Group. Mobliss did not return calls seeking comment.

The news that Mobliss may be close to shutting its doors, or merging with Reaxion, should come as no surprise as many small mobile game developers are finding that the mobile games business model isn’t working. Licenses for big-brand names are getting pricier, and the costs of distributing the games are getting higher. In addition to carriers taking a chunk of the revenues, aggregators are also taking a piece of the pie because they are the ones who have a direct partnership with carriers. Prior: “The challenge that we have is that the business model for mobile games doesn

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