Vivendi Games today announced that it has purchased two development studios, Secret Lair Studios, located in Issaquah, Wash., and Studio Ch'in in Shanghai, China. The purchase of Studio Ch'in is subject to the approval of the Government of the People's Republic of China under Chinese Law. Financial terms of the transaction were not disclosed.

The acquisition positions Vivendi Games as a key publisher of Xbox Live Arcade titles. These developers will help in expanding the scope of games under the VU Games brand being developed for Xbox Live Arcade. VU Games division Sierra Online already has numerous Xbox Live Arcade titles in development, including Assault Heroes, Carcassonne, as well as other unannounced games.