Mobile phone maker Nokia said it would buy the San Francisco-based online division of Sega Corp. Terms of the sale were not released.
Nokia has been recruiting developers to make games for N-Gage, a combination cell phone, game console and digital music player that the company plans to launch this fall.
As part of the Sega deal, the Tokyo-based game developer would publish titles for N-Gage. The struggling publisher of "Sonic the Hedgehog" and "Virtua Fighter" has been in merger talks with several companies for the last year.
Nokia plans to keep Sega's online division in San Francisco and hire its 51 employees after the sale is completed next month, a Nokia spokeswoman said.