Digtial Domain is branching from special effects into games.
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Special effects house Digital Domain moves into games with studio acquisition

Hollywood and games are getting back together. Special effects house Digital Domain is branching out into games with the acquisition today of Digital Funk Machine, a game studio run by gaming veterans.

Playa Vista, Calif.-based Digital Domain Holdings, parent company of visual effects house Digital Domain, is going into games and VR. The move is part of an investment in virtual reality, which tech advisor Digi-Capital says will be a $30 billion market by 2020.

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Written by

Dean Takahashi

Dean Takahashi is editorial director for GamesBeat. He has been a tech journalist since 1988, and he has covered games as a beat since 1996. He was lead writer for GamesBeat at VentureBeat from 2008 to April 2025. Prior to that, he wrote for the San Jose Mercury News, the Red Herring, the Wall Street Journal, the Los Angeles Times, and the Dallas Times-Herald. He is the author of two books, "Opening the Xbox" and "The Xbox 360 Uncloaked." He organizes the annual GamesBeat Next, GamesBeat Summit and GamesBeat Insider Series: Hollywood and Games conferences and is a frequent speaker at gaming and tech events. He lives in the San Francisco Bay Area.