Conquering or protecting the world is everyday stuff when it comes to video games.
L.A.-based Vivendi Games is taking a similarly global tack in its development of them.
The company, a subsidiary of Vivendi SA, recently finalized its purchase of Santiago, Chile-based Wanako Games, which is currently the largest game development studio in Latin America. In September, Vivendi snapped up Studio Ch’in in Shanghai, China at the same time it was acquiring Secret Lair Studios in Issaquah, Wash. The three entities comprise Vivendi’s Sierra Online unit, which is focused on the “casual” that is simple, aimed at non-hardcore players games market.
While companies in many sectors typically look overseas for cheaper labor costs, Vivendi said that wasn’t the case with the Wanako deal.
“Our interest in Wanako really is as a development studio,” said Sierra Online senior vice president David Haddad. “When you find a team that operates so efficiently and so well, you have to stick with them.”
Vivendi and Wanako developers have so far focused on two games. The first was “Assault Heroes,” which came out last year and was a hit for Wanako and Vivendi. The second is “3D Ultra Mini-Golf Adventures,” a project Vivendi’s Sierra Online has been working on for years.
Wanako executives are ecstatic about being onboard.
“We’re very excited to join a visionary group like Sierra Online who is focused on bringing truly entertaining and innovative online games to a mass market,” said Esteban Sosnik, founder and former chief executive for Wanako Games. “In working with Sierra Online on ‘Assault Heroes,’ it quickly became clear that our companies shared the same core values in game development.”
Sosnik will now run the Latin American division of Sierra Online, which is a key publisher of Xbox Live Arcade titles. Webbush Morgan Securities analyst Michael Pachter said looking to foreign developers made sense as a long-term strategy.
“I think the company is looking to bring in-house development skills,” Pachter said, noting that Vivendi wouldn’t buy out the company if it were looking solely for a quick return.
“There is a certain ratio of your costs that you need to fix,” he said. “If you were doing one game, you would go outside, but if you’re doing 10, then it makes sense to acquire the whole company.”
Vivendi isn’t the only video games publisher with a global vision. Los Angeles-based game maker Activision Inc. last week acquired Dublin, Ireland-based DemonWare, which provides middleware software for console and PC games. That deal should close in the first quarter 2008.
Armed Akimbo
AT & T; is now offering On Demand movies through its Homezone service in L.A. via Akimbo Systems, according to newly appointed vice president and general manager Kieran Nolan.
Akimbo provides movies, films and other entertainment for television via a broadband-Internet connection. It programs for more than 100 channels including the BBC, National Geographic, A & E; and Major League Baseball. Film channels include Anime Network, StashTV and Underground Film. Also available are blogs like Rocketboom and CommandN Reviewer.
AT & T; Homezone customers will have access to nearly 6,000 On Demand offerings and another through an additional alliance with Movielink.
Momentum Builds
Stuart MacFarlane, the former chief executive of Insider Pages, has been named managing director of Los Angeles-based venture capital and venture acceleration firm Momentum Venture Management.
MacFarlane will head the firm’s efforts in the consumer Internet space. MacFarlane was founding CEO of InsiderPages, which was sold to Citysearch last week, and was also previously VP of New Ventures at Idealab.
Mojungle Love
Ohio-based Peak Performance Solutions has acquired Mojungle Inc., the L.A.-based developer of mobile media and file sharing applications. Peak provides insurance risk management business applications and wants to merge Mojungle technology into its products. Financial terms of the deal were not disclosed.
Perfect Fit
Pasadena-based Perfect Market Technologies is partnering with social networking site Xanga, whose users will have the ability to see linked Web site previews.
Perfect Market already operates Snap.com, which functions as an online search engine. The company’s Snap Preview Anywhere service allows any Web site user to add previews of linked Web pages.
Staff reporter Dan Cox can be reached at (323) 549-5225, ext. 230, or at
[email protected]
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