New Sales Contract for Interplay Video Games

The French company that owns unprofitable video-game maker Interplay Entertainment Corp. said Monday it has granted exclusive rights to sell the Irvine company’s new games to Vivendi Universal SA so that Interplay can focus on game creation.

Titus Interactive, which owns 51.5% of Interplay, said the unit will probably save about $10 million a year as a result of the contract, which will allow it to trim marketing and distribution expenses.

“Titus can’t afford a worsening of its situation in the U.S.,” said Jean-Francois Granjon, an analyst at Credit Lyonnais Securities.

Titus Interactive said last week that a first-half loss at Interplay will significantly affect earnings for its fiscal year, which ended June 30. Interplay posted a first-half loss of $20.8 million.

“This accord is only the beginning” of Titus’s efforts to reorganize the U.S. company, Chief Executive Herve Caen said.

Interplay’s new games will be sold through Vivendi’s retail network, the company said. The accord excludes “Never Winter Nights,” which will continue to be distributed by Infogrames Inc. in North America, Titus said.