Sega, Partners To Develop Arcades

Sega Enterprises Ltd., DreamWorks SKG and MCA Inc. have agreed in principal to jointly design and develop public entertainment centers.

The centers, featuring advanced video arcade games, simulated rides, food and merchandise, will be designed by DreamWorks partner and film director Steven Spielberg and others, according to an announcement Thursday.

The new company, to be named later this year, will take over Sega’s arcade businesses and is set to open several locations within a year.

“Since the mid-80s Sega has revolutionized location-based entertainment in Japan by transforming conventional arcades into places where all people … go for interactive fun,” said Sega chief operating officer and president Hayao Nakayama.

The venture, subject to negotiation of a definitive agreement, will be led by MCA Executive Vice President Skip Paul.

“Together, Sega, MCA and DreamWorks have the opportunity to create exciting new experiences and environments that will redefine this business into the next century,” Spielberg said.

DreamWorks is an entertainment company formed last year by Spielberg, former Disney executive Jeffrey Katzenberg and music mogul David Geffen.