Computer game rivals in European deal

Sega has stopped making its Dreamcast console

Sony's European arm will produce and market games software belonging to game maker Sega in Europe, the companies announced on Wednesday.

In a joint statement, the former rivals said that Sony Computer Entertainment Europe (SCEE) will manufacture, distribute and market seven Sega titles designed for PlayStation2.

Sega has already announced it would supply game software to rivals, including Nintendo and the American computer software giant Microsoft - which itself plans to launch a game console business this year.

The games involved in the Sega-Sony deal are Space Channel 5, K-Project, Virtua Fighter 4, F-355 Challenge, Head Hunter and Ecco the Dolphin, with at least two of these appearing before Christmas, the companies' statement said.

In January, the Sega corporation said it would give up producing Dreamcast games consoles in favour of concentrating on games software and arcade amusements, blaming the volatility of the computer games market.

On Tuesday the Japanese company said it would further diversify by producing animated television programs, as part of efforts to reduce its reliance on the games business.

Munehiro Umemura, a general manager for Sega's future entertainment division, told a news conference: "We have been told that Sega has a lot of hidden treasures - we will dig them up one by one, and will offer them to our customers."

Entertainment

Sony has announced it is to launch a high-speed internet entertainment service - which it hopes will succeed where similar attempts to feature original content on the web have failed.

Sony Screenblast is aimed at 18- to 24-year-old "early adopters" of broadband internet access and people comfortable using video and audio editing tools.

The company says that the site will offer an introductory level of internet-based editing tools, clips from Sony films such as Men In Black, and tracks from Sony recording artists.

Users will be able to remix the audio from a song, mix and match certain scenes from films, add effects and select soundtrack options - then play back their own versions.