I'm also curious for what Yahoo was going for here. Playerscale (which only product really so far is Player.io) is actually something I've worked with in the past. And it's a fairly strong idea - an easy to use but versatile server platform for multiplayer games (along with client libraries of course). The only problem was that it wasn't that well executed. Long downtimes for no explained reason, large-functionality gaps that had to be hacked around, overly simplified concepts that limit usability, large security holes, etc.

So it will be interesting to see where Yahoo goes with this.