Activision deal could put further games companies in play

LONDON (MarketWatch) -- French media group Vivendi SA's (12777.FR) plan to take a controlling stake in U.S. videogames maker Activision Inc.

Activision is set to send ripples through Europe's computer games business and could lead to further mergers and acquisitions.

Sunday's announcement, which is expected to lead to a $18.9 billion merger of Vivendi's games division with Activision, highlights key issues at play in the fast-growing videogames market. Games publishers are striving to gain funding and marketing expertise in an ever-changing market, while large media conglomerates are trying to extend the value of their film, entertainment and music franchises into the gaming market, where they can more easily capture, hold and interact with the audience.

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