TDK goes for double in games market

Media and components giant TDK will storm into the leisure software sector as both a publisher and distributor by the end of the year.

The official announcement is expected to be made at Milia 1999, held between 9 and 12 February. A timetable for the launch has not been revealed although the unit is expected to be established by the end of the year.

A representative for TDK revealed: 'We are in contractual talks with a number of companies about a move into the leisure business. An official announcement will be made next month .'

Craig McNicol, managing director of distributor Koch Media, played down the potential threat of TDK's entrance into the leisure market. 'Unless TDK can offer something unique and of value, it will find it difficult to enter the market,' he said.

Nick Gibson, analyst at Durlacher, said: 'Apparently TDK already has titles lined up. It's not surprising. As in almost all key territories, the games market is on a high and it is tempting a number of companies into the sector. The market has had a couple of years of stable growth, but the next few years should see PlayStation sales start to fall.'

Gibson added that the launch of Sega's Dreamcast and the expected announcement of the PlayStation 2000 this year will ensure the industry continues to be fed by games-hungry, cash-rich consumers.