Publisher Mindscape has established a new French game studio, Punchers Impact, to concentrate on digital downloads for the Xbox 360, PlayStation 3 and PC.
The team of 40 includes former staff from Electronic Arts and Free Radical Design, and its first title is due for release at the end of 2010.
"It is very important for us to be involved at the heart of our industry by offering gamers the games they expect," offered Thierry Bensoussan, MD of the Mindscape Group.
"By building a pool of creative talent within a single studio, were ensuring that Punchers Impact has solid financial foundations allowing it to focus on developing innovative projects."
Guillaume Descamps, studio director, added: "This is a real opportunity for a studio to see its projects sponsored by a European group, above all in a context that developers are currently familiar with. I am delighted to have been able to put together a team of such high quality and am confident about the challenges that the team have taken on I cant wait to unveil our first project."