Sega Offers Online Games via ISP

This article comes from Highwaygames.com

Japanese Internet investor Softbank said Thursday that it has started a joint venture with game developer Sega and Taiwan's Acer to distribute video games through high-speed Internet networks.

The new company, Xsido, will offer Internet service providers game titles as well as a device that makes the software available to consumers regardless of the specifications of their PC or game console. The ISPs will in turn sell the titles to consumers.

Xsido said it kicked off the operation Thursday targeting ISPs in Japan, Taiwan and South Korea, with the cooperation of its investors Winstron and South Korean trading house SK Global, each holding a 14.6 percent stake.

Winstron, a subsidiary of Acer, Taiwan's top PC maker, will manufacture the software device. Softbank has invested 30 percent in the company through Softbank Internet Technology Fund; Sega bought 14.6 percent.

"We are betting on growth in demand for online contents with broadband services via ADSL fast Internet access becoming more popular," said Xsido's marketing director, Hitoshi Kaneko.

In addition to software from Sega's game console Dreamcast, minority stakeholders such as Avex and Namco will provide entertainment content, Xsido said.

SOURCE: Reuters.