Sega Sammy Holdings has announced it has reached an agreement with Take 2 for the outright sale of the former Sega studio Visual Concepts, sending a shockwave across the Sega fanbase.
SSH agreed to transfer all common stock and related assets of Visual Concepts, the developer of the ESPN 2K5 series of games, to Take 2 in a deal estimated to be worth $24 million.
"SEGA is proud that it has fostered such a strong and critically-acclaimed sports franchise," said Hisao Oguchi, president, SEGA Corporation. "We remain committed to the North American market, focusing on delivering innovative products that are equally as profitable as they are desirable to the western gamer."
"The ESPN Videogames line has not been a key profit driver in the North American market for SEGA," said Naoya Tsurumi, CEO of SEGA of America. "While SEGA recognizes the strength and depth of the ESPN Videogames franchise, we must remain committed to growing content that will help boost revenues across all western territories."
The news follows the recently announced agreement which will see SEGA distribute select Take 2-published software titles in the Asian region, including Japan.