A little while back GungHo and Game Arts announced the development of Grandia Online, the first MMO in the Grandia franchise. Apparently that was not the only collaboration between the two companies as it seems GungHo has now acquired Game Arts in order to strenghten its global expansion, mainly into European and North American markets. GungHo also announced it licensed AEGIA's PhysX technology to be used in its online titles. The acquisition also allows GungHo to use Game Arts' considerable copyright assets and reducing development costs for future game development.