Undertow Dev Acquired By Epic News

Epic Games has today announced the acquisition of Chair Entertainment, the developer of Unreal Engine 3-driven Xbox Live Arcade title, Undertow.

The outfit, which will become a wholly-owned subsidiary of Epic, was first established in 2005 and launched its sub-aqua XBLA shooter at the end of 2007. Undertow was the 'compensation package' offered by Microsoft earlier in 2008 following issues with Xbox Live over the Christmas 2007 and New Year period.

"Chair's stylized approach to creating games is further enhanced by their ability to stretch our technology in new directions that not only help in creating amazing gaming experiences but also demonstrate the power and versatility of the Unreal Engine," said Mark Rein, vice president of Epic Games, Inc. "We are thrilled to bring the Chair team into the Epic family, and look forward to working with them to create original new games that continue to innovate and inspire."

"Our team has long admired Epic for its ability to shape the game industry with its innovative technology and first-rate video game offerings," said Ryan Holmes, Co-Founder and CEO of Chair Entertainment Group. "We share Epic's passion for creating ground-breaking game play experiences and are excited for the opportunity to partner with a truly visionary company."

Chair are yet to confirm any new titles for either Xbox Live Arcade or PlayStation Network.