Home Mobile Machine Zone Shuts Down Its DSP, Lays Off 125 Employees, Including Media Buyers

Machine Zone Shuts Down Its DSP, Lays Off 125 Employees, Including Media Buyers

SHARE:

Machine Zone’s (MZ) experiment with homegrown ad tech is over.

The gaming company shuttered Cognant, an internal demand-side platform created in 2016 to help MZ’s media buying team plan, create, buy, optimize and measure marketing campaigns.

MZ laid off the entire Cognant team in June, as well as around half of its in-house media buyers, roughly 125 ad ops people in total, all located in the Bay Area. MZ declined to comment publicly, but a person close to the company confirmed the closure and the layoffs.

The tech was originally developed to help MZ promote and monetize its own titles, in particular “Game of War: Fire Age,” “Mobile Strike” and “Final Fantasy XV: A New Empire” – some of the top-grossing games in the world.

MZ soon after made the Cognant technology generally available to other mobile performance marketers.

Cognant, which plugged into more than 200 ad networks, including Google and Facebook, claimed to manage tens of millions in marketing dollars per month and, according to its website, to use its position as “the largest mobile media buyer on the planet to drive efficiencies across the board for all advertisers.”

However, it’s possible advertisers weren’t seeing the expected returns.

The move to wind up Cognant is also part of a company-wide revivification centered on getting back to MZ’s core reason for being: mobile games.

But, recently, MZ had gotten away from its roots with Cognant and other ventures, including Satori, which started as a division focused on creating AI-powered blockchain technology that aggregates public real-time data feeds. Use cases range from analyzing how public transit systems are functioning – Satori ran a test of this in New Zealand a couple of years ago – to streaming data for self-driving cars. Satori is even planning to launch its own digital token soon.

MZ’s co-founder and CEO, Gabe Leydon, left his post in June to lead the tokenization of Satori’s tech, with plans to spin the company off into a standalone business. MZ’s COO, Kristen Dumont, was elevated to chief exec at the same time CTO Vincenzo Alagna was appointed president of games.

Shedding Satori and shutting down Cognant, as well as folding games more completely into the C-suite, all appear to be part of a strategy to streamline the business and concentrate on gaming.

Must Read

Comic: S.P. O’Middleman’s

How SPO Helped This Indie Agency Cut Its SSP Partners To Single Digits

Goodway Group has reduced the number of SSPs it works with from about 20 at the end of 2024 to just single digits today.

Comic: The Mobile Freight Train

CloudX Takes A Swing At Black‑Box Mobile UA With Agentic Buying Tools

CloudX, which makes AI infrastructure for app publishers, is expanding from monetization to agentic buying for user acquisition.

The Trade Desk Forms A Travel And Hospitality Media Network

The Trade Desk expanded its relationships with a host of travel, hospitality and mobility-focused commerce media partners, including Uber Advertising, Booking.com, United Airline’s Kinective Media and MARRIOTT MEDIA.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Fox Announces Plans To Acquire Roku For $22 Billion

It’s long felt like a foregone conclusion that Roku would eventually get gobbled up by a much bigger fish. Now, the day has finally arrived.

What Platforms Say Will Bring Bigger Ad Budgets To Digital Audio

To close the gap between digital audio ad spend and audience engagement, audio platforms want to get more deeply embedded in omnichannel campaign planning tools.

AdExchanger's Big Story podcast with journalistic insights on advertising, marketing and ad tech

Programmatic TV Home Screens And Gaming Ads For Kids

How can companies put ads in new places without hurting the user experience? Smart TV makers, like Samsung, are adding programmatic ads to the home screen, and Roblox will now show ads to users under 13. We examine the trade-offs as platforms expand their ad footprint.