Sega acquires Demiurge, invests in Space Ape

Marvel Puzzle Quest developer Demiurge Studios has been acquired by Sega.

The Sonic the Hedgehog creator has also invested in UK studio Space Ape and established a majority stake in US studio startup Ignited Artists.

The moves come after Sega last month announced the cutting of 300 jobs and a shift in focus from console to digital and mobile.

We’re constantly evaluating the independent mobile game space for studios that fit our vision of fun, high-quality gameplay experiences,” Sega Networks CEO Haruki Satomi said. Demiurge underscores our commitment to investing in the West and complements our current roster of US and European mobile studios, including Three Rings and Hardlight. In addition, our strategic investments in Ignited Artists and Space Ape Games solidifies our commitment to publishing quality games across the globe.”

Demiurge may be best known for mobile title Marvel Puzzle Quest, but it has also been involved in the development of many tiple-A console releases including Rock band, Borderlands, Mass Effect and BioShock. Its CEO Albert Reed will join Sega as VP of product management, although he will continue as Demiurge’s studio head.

The deal will also see Sega bringing some Space Ape titles to japan.

"We are delighted to partner with a company with the gaming pedigree of SEGA," Space Ape CEO and founder John Earner said. "Our last release, Samurai Siege, was a success in the Japanese mobile market. Japan is now our second-largest market and contributes around a third of our revenues. With Sega Network’s experience and record of success, we are confident that Rival Kingdoms, our next game, and future titles will be able to improve upon this success."