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MCA may partner with Sega for entertainment complex

LOS ANGELES -- MCA Inc. may have agreed to build an entertainment attraction with video-game giant Sega Enterprises Ltd. at MCA's Universal Studios Hollywood complex.

The partnership could begin construction as early as this year.

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The Wall Street Journal, citing unnamed sources, said the two companies have commissioned architects and designers to build an attraction combining Sega's expertise in high-tech arcade games with MCA's movie and television themes.

The companies did not immediately comment on the project, expected to occupy between 30,000 and 50,000 square feet.

Sega derives nearly half its revenues from arcade operations and sales of arcade games. It recently exported the concept to the United States with the opening of the $5.5 million 'VirtuaLand' at the Luxor Hotel in Las Vegas, Nev., and plans to open high-tech arcade parks with 'virtual reality' attractions in Osaka and Yokohama, Japan later this year.

The partnership with Sega could represent a conflict for MCA's parent, Matsushita Electric Industrial Co., one of the backers of 3D0 Co., a prominent new rival to Sega in the home-video game market.

MCA's Universal Studios is expected to offer its expertise in moviemaking and thrill rides to the venture. Universal's properties include 'Jurassic Park,' 'E.T. -- The Extraterrestrial' and 'Back to the Future.'

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MCA's more the 400 acres of properties in Los Angeles include its headquarters, Universal Studios, a $100 million CityWalk retail complex, an 18-screen theater complex and the Universal Amphitheater.

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