Yahoo has acquired Cloud Party, a browser-based game creation engine.

Cloud Party was built as free-form virtual world experience with emphasis on user-generated 3D content. For the uninitiated, it is the brainchild of MMO and console game industry veterans such as Sam Thompson (ex-Cryptic and Pandemic), Jimb Esser (ex-Cryptic), Conor Dickinson (ex-Facebook and Cryptic) and Jered Windsheimer (of Cryptic).

The acquisition took place on Friday, January 24.

"Yahoo has acquired Cloud Party, a company that has created a virtual 3D experience, directly in users' browser. With Cloud Party, users can build and create a world, customize an avatar, and share easily on the web without any downloads or plug-ins. The Cloud Party team is extremely committed to user experience and to the creativity that their product released in people. We're excited to merge their unique perspective and experience with a team that is just as passionate about gaming," said a Yahoo spokesperson to TechCrunch.

The Cloud Party team will be joining Yahoo post two years of operation and is set to shut down service on February 21, 2014. The company shared the details in a blog post, but the financial details of the deal are not known.

"We're excited to announce that the time has come for the Cloud Party team to start our next adventure. We are joining Yahoo! The last two years have been an incredible experience for everyone here. We've been continually amazed by your creativity and the worlds you've built and shared with us," notes Sam Thompson, CEO and Founder Cloud Party, in the bog post.

At this juncture, it is not known what the Cloud Party team will work on at Yahoo but if Thompson's blog post is any indication then the staff will bring its "vision and experience to a team that is as passionate about games" as them.

While Yahoo already has a games portal, the same is not comparable to a browser-based virtual world.  Considering the Cloud Party works in browsers even without plug-ins, the acquisition could be directed at bringing additional video game engineering Yahoo's way.  

Interestingly, Yahoo also acquired PlayerScale, a gaming infrastructure start-up, in May 2013. With the Cloud Party acquisition also in the bag, Yahoo, it seems, is looking at strengthening its armoire of game-related development talent.