Sega & Namco Extend their Mobile Phone Development

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Sega and three cellular phone units of Japan Telecom agreed to jointly develop technology to allow users of Japan Telecom's J-Phone (Java) cellular phone service to play games on their mobile phones, whilst Namco representatives announced a joint deal with Hong Kong CSL to provide cell phone games throughout the Hong Kong region.

The Sega agreement includes developing games for J-Phone's new cellular phone handsets, set to debut in June, which are compatible with the Java programming language. The J-Phone group has 10 million wireless subscribers.

For Sega, the agreement is part of a move to expand sources of profit, as the Tokyo-based company shifts its focus to game development after scrapping its flagship Dreamcast video-game console last month. The move puts Japan's No. 3 mobile phone operator, through its J-Phone units, on track to be the second cellular carrier to introduce Java-compatible handsets.

Japan's cell phone companies are betting that more revenue from data services will offset expected declines in sales from voice services. Java, which enables compatibility with a wide range of electronic devices, is seen as a key to boosting wireless data traffic with new applications such as simulation games and dynamic updating of stock prices.

In Hong Kong, Namco has created a series of wallpaper type images based on their popular game series', which users can adapt to their cell phones. Specifically, 'waiting' and background images based on Pac-Man, Mr. Driller, and Tekken are already available. Namco is said to be working on a handful of cellphone based games scheduled for release later this year in Hong Kong.

Sources: Bloomberg News, Coremagazine, Famitsu

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