Ziff Davis announced today that it has sold 1up.com, GameVideos.com, MyCheats.com, GameTab.com, and print magazine Electronic Gaming Monthly to UGO Entertainment. Rumors have been flying to this effect as speculators noted that the electronic gaming network has lost money over its 5 year run.

Said the 1up network director Sam Kennedy, “We are extremely excited to join the UGO team. Relying on UGO’s publishing platform will allow us to focus on what we do best — creating great content and ‘owning the conversation’ among gamers through our unique, authentic and definitive voice and community.”

Although much of the official press surrounding the buyout has been positive (Ziff Davis for example, will be able to use this transaction to pay off some of its debt) and focused on the growth opportunity this represents for UGO, the buyout was born of money troubles in a tough economy and there have been casualties. The most visible to consumers will be the closure of EGM magazine after its January issue, with corresponding layoffs. Furthermore, much of the podcasting and video podcasting staff from 1up have also been terminated. All told, approximately 30 gaming journalists and related staff are on the streets today as a result of the buyout.

Kennedy defended UGO’s downsizing, saying, “UGO did what they could to, what I consider, ‘save’ 1UP. Obviously, all of us would have wanted to see things go differently . . . If any company out there would have been willing to support us as we were, they certainly didn’t step up.”

It’s difficult to blame Kennedy for making the best of the situation and looking to the future, but those journalists on the street tonight are entering an unfavorable job market. Best wishes to those affected.

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