In an extension of their multi-year strategic alliance, Activision Inc. and DreamWorks Animation SKG said that Santa Monica-based Activision will be opening a dedicated studio facility on the DreamWorks' Glendale campus.

The move, which the companies say will establish an unprecedented level of collaboration between a Hollywood studio and a video game company, will facilitate simultaneous co-development between DreamWorks' CG feature films and Activision games based on those films.

In November 2005, Activision signed a multi-year agreement with DreamWorks Animation for the exclusive video game rights to all current and future console platforms, PC, and handheld devices for DreamWorks' upcoming feature films -- "Bee Movie," "Kung Fu Panda," "Rex Havoc" and "How to Train Your Dragon."

The deal also extended Activision's rights beyond "Shrek the Third" to include potential future films in the "Shrek" franchise. The company's alliance with DreamWorks has resulted in more than $300 million in video game sales worldwide.

For reprint and licensing requests for this article, CLICK HERE.