Shares in Videologic Group Plc have seen heavy trading on speculation that it is about to sign a deal with Sega Enterprises Ltd to provide a specialist 3D graphics chip for Sega’s upcoming games console. Three and a half million shares were traded in graphics specialist Videologic on Monday even though the rumored deal has not been confirmed. In February, Videlogic announced a specialist 3D graphics chip aimed at the console games market which it developed with an unnamed partner. In addition, Videologic does not deny that an agreement with Sega is on the cards, possibly sometime in the summer or autumn. Sega terminated an existing agreement with Videologic’s rival 3Dfx Interactive Inc for the provision of a 3D graphics chip last July, and incurred a high court injunction to return the company’s trade secrets (CI No 3,336).
