News out of Tokyo this morning has Square, Namco, and Enix announcing that they will be developing an online network together. Talks have been ongoing since April. The main objective appears to be to spread costs out for online game development. Square\'s president, Hisashi Suzuki, said at a joint news conference the three companies will set up a joint venture by the end of this year to run commercial online game services.
The three companies will jointly develop technologies, including software for programming of games to be played on mobile telephones. Other areas of cooperation include online entertainment services, arcade game development and character licensing, they said.
Details: (1) The three companies will undertake preparations to launch a joint venture to manage Square’s PlayOnline, to which they will all supply content; they will also develop this business in North America and Asia; (2) they plan to unify their overseas marketing operations; and (3) they will jointly develop their cellular-phone services and R&D support technologies, as well as pursue joint overseas development. Square will take leadership in (1), Namco in (2), and Enix in (3) with cooperation between these companies. However, only broad outlines of the plans were given for the direction of the partnership and things may evolve over time.
Additional plans were also disclosed on business relationships of the individual companies. First, Enix and Square have begun talks on the joint development of online game plans, while Namco will supply its content to Enix\'s publishing business, characters held by Enix and Square will be supplied as game prizes for use in Namco\'s facilities; and finally the three companies are looking into the possibility of joint development of arcade games.
The three companies will start testing online systems from July. Enix President Keiji Honda said his company hopes to release its first online game title during the next fiscal year to March 2003, while Namco Vice President Kyushiro Takagi said his company has already started its online game development, but declined to give further details.
Sony Computer and NTT Communications may invest in the joint company, the executives said.The alliance is not exclusive, but the companies declined to say if any negotiations are taking place with other companies.
Taking advantage of the advance in online communication technologies, the tie-up is expected to create a new "network entertainment" market, the three firms said. The service will also be offered in North America and Asia, including China.
"I believe there has never been an online game service with 1 million or more users," Enix\'s Honda said, adding that the companies cannot calculate the total investment needed for the new business until they conduct further network tests.
As the first step of their alliance, the three companies will cooperate in translating their game software sold overseas into local languages.
The executives said the three companies are not considering mutual shareholding for the moment.
Commenting on the alliance, Tsubasa Research Institute Ltd.’s Takashi Oka said that “It\'s impossible for Square to proceed with the online game infrastructure by itself, with the plans, risks for investing in online game will be reduced to one-third.\'\'
Source Gaming-Age
Sony is the devil...Japan is enthralled as sony decides to invest in gaming conglomerate providing probably fantastic games. However, across the pacific, Bill Gates is yelling at J. Allard wondering why he did not get in on the deal. (Quote from storm at IGN Boards)
MS invests in Tecmo, gets DOA3. Sony invests in Namco/Square and Enix and steam rolls over MS. (Quote from siraris)
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