Games developer GameHouse will continue to develop titles for Mac OS X following its acquisition by RealNetworks this week.

RealNetworks is buying the games publisher for $35.6 million, extending that company's core business to include games development and publishing.

GameHouse develops easy-to-understand games. RealNetworks has sold more than two million such games through RealArcade over the last two years, many of them made by GameHouse, according to a RealNetworks statement.

Based in Seattle, GameHouse has sold over a million games since it launched in 1998. The market for online PC games is booming with revenues set to reach $648 million in 2004, according to IDC. All 26 company employees will join RealNetworks.

RealNetworks president Larry Jacobson said: "This combines content development and publishing with distribution. It allows us to move into what we believe is a very explosive growth channel for our company," Jacobson said.

GameHouse will operate as a wholly owned RealNetworks subsidiary called GameHouse Studios and will be headed by its current CEO, Garr Godfrey, who will become general manager. The deal is expected to close within two weeks, the company said.

Some commentators in the Mac gaming community had expressed concern that GameHouse would end Mac development as a result of the deal. They need not worry, according to Inside Mac Games (IMG).

"GameHouse will continue to support and develop new games for the Mac platform. Mac gamers purchase games at almost three times the rate of PC players and the share of revenue we receive from Mac players far exceeds their actual representation in the market," GameHouse president of marketing told IMG.