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Sony Wags the Dog

Sony Computer Entertainment America Inc. bought software developers Red Zone Interactive Inc. and Naughty Dog Inc, in a bid to provide new video games for its PlayStation video game consoles.
Author: Jeff Reimers
Published: January 22, 2001
Sony Computer Entertainment America Inc. said on Monday it bought software developers Red Zone Interactive Inc. and Naughty Dog Inc, in a bid to provide new video games for its PlayStation video game consoles.


The Foster City, Calif.-based division of Sony Corp., which makes the popular PlayStation and its successor, PlayStation 2, said the privately held developers will operate as divisions of Sony.

Red Zone Interactive will exclusively produce its sports video games for the Sony PlayStation series, expanding on its 989 Sports titles that include NFL GameDay, NBA ShootOut, NHL FaceOff and NCAA Final Four. Naughty Dog makes the Crash Bandicoot series and Crash Team Racing (CTR). The financial terms of the deal were not disclosed.[blockquote]"Through this acquisition we can continue to ensure that we are providing the most challenging, revolutionary computer entertainment experiences that will exceed consumers expectations," Shuhei Yoshida, vice president for product development, said in a statement regarding Naughty Dog.[/blockquote]Purchasing smaller developers ensures they are exclusive game providers for Sony's video game consoles, especially the PlayStation 2, released in the United States in October.

The first in a new generation of enhanced, 128-megabit consoles, the PlayStation 2 is expected to face stiff competition from Microsoft Corp.'s Xbox and Nintendo Co. Ltd.'s GameCube.

San Diego-based sports game developer Red Zone Interactive was founded in December 1997, by personnel from Sony's now defunct development studio division, responsible for in-house game development. The company will not move or make changes to its 65 staff members, the statement said. Sony said Santa Monica, Calif.-based Naughty Dog will retain its 30 employees and become a wholly-owned subsidiary of Sony Computer Entertainment America.

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