TECHNOLOGY & TELECOMMUNICATIONS
From Times Staff and Wire Reports
Sega to Invest $90 Million in Atari: The Japanese video game giant bolstered its struggling rival in return for access to key video game technologies. Tokyo-based Sega Enterprises Ltd., the world’s second-largest video game company, bought 4.7 million newly issued shares in an investment worth $40 million, giving it 7.4% ownership of Atari Corp. Sega will pay another $50 million in cash as prepaid royalties for access to Atari’s 70-plus game patents. An analyst said Sega will benefit from Sunnyvale, Calif.-based Atari’s 64-bit game format--Sega currently has only a 32-bit game--and that the shared technology will intensify industry competition.
