• by Gavin O'Malley  @mp_gavin, September 15, 2008

Speaking to the strength of the industry, Seattle-based casual games distributor Big Fish Games has raised a sizable $83.3 million in financing led by Balderton Capital, General Catalyst Partners, and Salmon River Capital.

"Casual gaming is so successful because game development costs are relatively low, allowing experimentation and innovation to come from our independent developer partners around the world," said Jeremy Lewis, CEO of Big Fish. "This news reinforces the fact that the industry is maturing and a clear leader is emerging."

The funds will facilitate the company's strategy of growth through acquisitions, along with international expansion, according to Lewis.

"We recently launched a portal in Japan, opened an office in Vancouver, B.C. and we are actively recruiting for more than 60 current openings in our Seattle office alone," Lewis said.

Paul Thelen--a former RealNetworks manager responsible for its RealArcade gaming business--founded Big Fish back in 2002. A Goldman Sachs veteran, Lewis took the reins last fall when Thelen assumed the role of chief strategy officer.

Big Fish has attempted to distinguish itself through the development of episodic content, analogous to episodic television such as HBO's "The Sopranos."

"We are leading this evolution, and believe the next episode of our hit franchise, Mystery Case Files, will demonstrate this breakthrough," said Lewis.

Along with online and downloadable games like "Mystery Case Files," which is expected to debut later this year, the company is also expanding into Nintendo Wii console games.

Already profitable, Big Fish had sales of roughly $50 million last year.

Big Fish Games works with some 500 game developers and distributes over 1 million games daily to consumers worldwide.

Industry-wide, casual games are attracting roughly 200 million active players per year, and take in about $2.25 billion, according to a recent Casual Gaming Association report.

The CGA also found that the market is growing at a rate of about 20% per year.

Still, Lewis admitted that clear hurdles lay ahead for Big Fish and its competitors. "One future barrier could potentially arise if wireless operators limit or impede consumer access to mobile games," Lewis said.

Rival RealNetworks is now in the process of spinning off its online gaming business, and is reportedly considering an IPO. Big Fish presently has no such plans, according to a company spokesman.