In what should be a significant fillip for the embattled 3DO Co and its Interactive Multiplayer games machine standard, Matsushita Electric Industrial Co Ltd plans to set up its own video games software house in Japan this month or next. The company has not yet announced full details of the new firm but it will start with three to four software engineers, some hired from outside the company. It says the new firm will develop and market games for the REAL Matsushita version of the 3DO Co design, and for the 64-bit follow-on, which uses a PowerPC RISC variant.