SEGA Signs Deal with AGEIA to Use Physics Technology for Developing Next-Gen Games

Business Wire, March 8, 2005

TOKYO -- SEGA Corporation announced today a license agreement with AGEIA(TM) Technologies Inc. (AGEIA) that entitles it to use the NovodeX(TM) Physics SDK (NovodeX(TM)) in games developed for the PC and next generation game consoles.

The agreement allows SEGA to use the AGEIA PhysX(TM) chip, a hardware Physics Processing Unit (PPU), for a radical increase in the extent to which physics can be used within PC games. This technology supports the dramatic use of realistic physical effects in games (e.g. explosions, demolition, fluids, particles, clothing and fabric simulation). The power afforded by this hardware also makes it suitable for the development of 100% physically simulated game characters.

SEGA evaluated several vendors' middleware solutions for physics simulation. The technical priorities were that of speed and stability. Commercial considerations such as freedom of use, and the extent to which AGEIA recognized the need to support cross-platform solutions resulted in SEGA deciding to use NovodeX(TM) under license from AGEIA.

This gives us the opportunity of replacing or augmenting key-frame based technologies with robotics based control technologies, for the creation of life-like creatures, previously only seen in academic research. SEGA believes that the combination of AGEIA physics technology together with complementary AI technology will bring in a new era of game development, without the need to sacrifice graphic appeal.

While SEGA remains open to the use of physics technology provided by other vendors, AGEIA physics technology is now a key part of SEGA's portfolio of core technologies. NovodeX(TM) as a cross-platform solution is attractive by itself. NovodeX(TM) coupled with the power of the AGEIA PhysX(TM) chip for hardware accelerated physics allows new creative opportunities that we are as yet only on the verge of starting to imagine.

About SEGA(R)

SEGA(R) Corporation is a worldwide leader in interactive entertainment both inside and outside the home, encompassing consumer business, amusement machine sales and amusement center operations. The company develops, publishes and distributes interactive entertainment software products for a variety of hardware platforms including PC, wireless devices, and those manufactured by Nintendo, Microsoft and Sony Computer Entertainment Inc. SEGA(R) Corporation's Web site is located at http://sega.jp.

About AGEIA

AGEIA(TM) Technologies Inc. is a fabless semiconductor company dedicated to delivering pervasive interactive reality to next-generation games. Its flagship product, the PhysX chip, is the world's first dedicated Physics Processing Unit (PPU) -- a completely new hardware category that bridges the gap between static virtual worlds and responsive physical reality. The PhysX chip allows developers to use active physics-based environments for a more life-like entertainment experience. For more information visit www.AGEIA.com