3DO Will Leave Hardware Business
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Times Staff and Wire Reports
3DO Co., concentrating on computer games and the Internet, said it will leave the hardware business by forming a semiconductor company with South Korean electronics maker Samsung Group. The company, which was unable to succeed with its innovative game player, said last year that it would sell its hardware division or form a joint venture with it. Samsung will contribute $30 million to the currently unnamed venture, which will make specialized chips focusing on graphics, audio and video for computers and consumer products. Other details weren’t disclosed. Redwood City-based 3DO will continue to produce games for personal computers, including titles for play over the Internet. Shares rose 12.5 cents to close at $5.375 on Nasdaq.