Sega Rallies Bugbear for PSP game

Sega Europe has signed up Finnish studio Bugbear to make the handheld version of its arcade racing game Sega Rally.

Bugbear is well known as a racing game studio, thanks to its work on FlatOut 1 and 2. It has also produced Rally Trophy (2001), Tough Trucks (2003) and N-Gage arcade racer Glimmerati (2005). The studio is currently finishing FlatOut Ultimate Carnage for Xbox 360 and working on other ]unannounced console, handheld and PC projects.

Bugbear will build the new Sega Rally game from the ground up, recieving guidance along the way from Sega’s Birmingham, UK-based Racing Studio, which is making the next-gen console versions of the title.

The PSP game is due out in September.