Sega Holdings USA has acquired acclaimed developer Secret Level. The company, which was founded in 1999, is a leading video game developer well known in the industry for developing cutting-edge next-generation technology. With the acquisition, Sega will be able to establish a new internal development arm in North America.

A Sega development partner for almost a year, Secret Level will take advantage of Sega’s vast library of content to stretch its legs for the next-generation systems.

In recent years, Sega has rebalanced its development strategy to be more Western focused, commented Naoya Tsurumi, CEO of Sega of America and Sega Europe. On the heels of our first successful studio acquisition with The Creative Assembly, the addition of this development powerhouse further moves Sega toward its goal of becoming a leading next-generation publisher.

Over in Europe, meanwhile, Sega Holdings Europe has acquired multi-award-winning development studio Sports Interactive. The company’s founders, Paul and Oliver Collyer, are the creators behind the hugely successful Football Manager series – which, with only two titles from the franchise released so far, has sold in excess of 1.5 million copies and become the second fastest-selling PC game of all time in the UK.

Sega aims to support the company in continuing on its existing development path, while also expanding its resources for the future. Sega will continue to support Sports Interactive to develop NHL: Eastside Hockey Manager, Out of the Park Baseball and the Football Manager series, as well as exploring new ventures.

The first titles to be released under the new partnership will be Football Manager 2006 for Xbox 360 and Football Manager Handheld for the PSP portable entertainment system, both out for release on April 13, 2006.