Canadian development firm Sandbox Studios has announced that it has merged its operations with Swedish developer Digital Illusions. The combined companies will have nine projects in development for such consoles as the Sony PlayStation and PlayStation 2, the Microsoft Xbox, and the Nintendo Game Boy Color and Game Boy Advance. The number of employees in the newly formed company will be more than 150. Specific terms of the agreement, which in general involved a cash payment and a number of Digital Illusions shares, were not disclosed.
Sandbox Studios is currently developing Shrek for the Xbox and PRYZM Chapter One: The Dark Unicorn for the PlayStation 2. Digital Illusions is currently developing Motorhead2 for the PlayStation 2.