“Shiny Entertainment fits well with the current studios of Foundation 9 Entertainment and aligns with our long-term goals for the future,” said Jon Goldman, Chairman and CEO. “The studio has tremendous talent and experience working with big Hollywood franchises and will be working with us on a major, as-yet-undisclosed day and date release. The Shiny team will only add to our capabilities and technology base.”

Under the terms of the deal, the Shiny team will remain intact and will co-locate with The Collective, one of the Foundation 9 studios, in 2007.

Shiny Entertainment was started in 1993 and has shipped eight products including two games based on The Matrix film franchise. The studio develops for all platforms and is perhaps best known for its original property, Earthworm Jim (which remains an Atari property), which debuted on the Sega Genesis and Super Nintendo in 1994. Shiny was acquired by Atari in 2002.

Shiny will join current F9E studios ­ The Collective, Backbone Entertainment, Pipeworks, ImaginEngine and Digital Eclipse ­ solidifying Foundation 9’s presence as the largest independent developer in North America. The company develops in all genres for all platforms and age groups, and has shipped more than 300 titles, including many bestsellers.

The company is currently at work on more than 20 titles, including two new editions of its original property, Death, Jr., to be published by Konami; Dirty Harry to be published by Warner Bros. Interactive Entertainment; and Sonic Rivals to be published by Sega. The company’s Backbone studio just recently shipped MechAssault: Phantom War for the Nintendo DS, published by Majesco Entertainment.