Sega, which recently announced its third consecutive year of losses and whose chairman resigned as a result, hopes the move will strengthen its internet business and allow it to lead the market in mobile software distribution in the US.
The companies will develop new software allowing mobiles to access the internet and process data at high speeds using technology now used on Sega’s Dreamcast games consoles.
The phones will be able to download games and video in addition to other internet data. It is expected that they will be launched in the US in Spring next year.
The announcement helped Sega’s share price overcome the effects of disappointing Dreamcast sales to climb by 19% this morning. Sega is hoping to revive its fortunes by promoting internet-related business.