Vivendi goes global in search of cutting-edge developers: acquisition of Chilean firm Wanako boosts its 'casual' unit Sierra online.

CONQUERING or protecting the world is everyday stuff when it comes to video games.

L.A.-based Vivendi Games is taking a similarly global tack in its development of them.

The company, a subsidiary of Vivendi SA, recently finalized its purchase of Santiago, Chile-based Wanako Games, which is currently the largest game development studio in Latin America. In September, Vivendi snapped up Studio Ch'in in Shanghai, China at the same time it was acquiring Secret Lair Studios in Issaquah, Wash. The three entities comprise Vivendi's Sierra Online unit, which is focused on the "casual"--that is simple, aimed at non-hardcore players--games market.

While companies in many sectors typically look overseas for cheaper labor costs, Vivendi said that wasn't the case with the Wanako deal.

"Our interest in Wanako really is as a development studio," said Sierra Online senior vice president David Haddad. "When you find a team that operates so efficiently and so well, you have to stick with them."

Vivendi and Wanako developers have so far focused on two games. The first was "Assault Heroes," which came out last year and was a hit for Wanako and Vivendi. The second is "3D Ultra Mini-Golf Adventures," a project Vivendi's Sierra Online has been working on for years.

Wanako executives are ecstatic about being onboard.

"We're very excited to join a visionary group like Sierra Online who is focused on bringing truly entertaining and innovative online games to a mass market." said Esteban Sosnik, founder and former chief executive for Wanako Games. "In working with Sierra Online on "Assault Heroes," it quickly became clear that our companies shared the same core values in game development."

Sosnik will now run the Latin American division of Sierra Online, which is a key publisher of Xbox Live Arcade titles. Webbush Morgan Securities analyst Michael Pachter said looking to foreign developers made sense as a long-term strategy.

"I think the company is looking to bring in-house development skills," Pachter said, noting that Vivendi wouldn't buy out the company if it were looking solely for a quick return.

"There is a certain ratio of your costs that you need to fix," he said. "If you were doing one game, you would go outside, but if you're doing 10, then it makes sense to acquire the whole company."

Vivendi isn't the only video games publisher with a global vision. Los Angeles-based game maker Activision Inc. last week acquired Dublin, Ireland-based DemonWare, which provides middleware software for console and PC games. That deal should close in the first quarter 2008.

Staff reporter Dan Cox can be reached at [phone], ext. 230, or at [e-mail].