LOS ANGELES, April 28 -- Metro-Goldwyn-Mayer and Sega of America announced Wednesday an agreement to jointly create games and interactive media, television programs and films.
Details of the agreement were not disclosed, but both companies will collaborate in production and marketing of new media products. The products will bear both the MGM and Sega names.
'We're very excited about being in the forefront of the convergence of entertainment and technology, and we couldn't have a better ally in this effort than Sega,' said Frank G. Mancuso, MGM's chairman and chief executive officer.
Sega president Tom Kalinske said his company believed in the 'melding of live-action video and computer technology' as a way of delivering a 'cinematic experience on a mass-market-affordable home game system.'
Sega of America is part of the Japanese-based Sega Enterprises Ltd. and challenges Nintendo for leadership in the booming videogame market. MGM produces and distributes worldwide both motion pictures and television programs.
MGM and Sega executives said the products to be developed under the agreement will be original concepts. They said they may choose in the future to develop interactive games on 1995 and 1996 movie releases from the MGM and United Artists film divisions.
The companies plan to develop at least two interactive CD-ROM titles for release this year.
With the deal in place Sega is now allied with a major studio. The company already has an estimated 45 percent of the U.S. videogame market, captured by the popularity of 'Sonic the Hedgehog' and 'Mortal Combat.'
MGM will supply creative filmmaking talent and live-action interactive footage for future Sega CD-ROM projects for the Sega CD.
Allen Cole-Ford, MGM's executive vice president for strategy and development, said the deal will pair MGM's expertise in story development and scripting and access to top writers, actors and directors with Sega's technical knowhow and understanding of gameplay and interactive storytelling.
