Bandai has taken a step forward in its uphill struggle against Nintendo's Gameboy - it has teamed up with fantasy games company Square Develops.
Square confirmed it has reached an agreement with Japanese toy company Bandai to develop software for its WonderSwan handheld game player. Bandai has significant ground to make up on the Gameboy which dominates the handheld games market.
Square's fantasy games are notoriously expensive to develop. Bandai, however, needs a strong partner to create 'must have' consumer games that can dent Nintendo's monopoly in the market.
Nintendo has shipped approximately 1.2 million WonderSwans into Japanese stores since it launched this spring - peanuts to Nintendo, which has shipped 80 million Gameboys worldwide in a decade.
Bandai is expected to launch its WonderSwan in the US in the spring. But the battle isn't finished there. According to sources Nintendo is working on a portable attachment to its so-called 'Dolphin' console due for launch next year, following in the footsteps of the Sega Dreamcast. The idea is that you can store games levels from your consoles and play them on the move either alone or with friends.
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