Chairman of UKIE and Mastertronic boss, Andy Payne, is to lead the group of developers collaborating to publish titles through digital distribution.
The Games Consortium will consist of up to eight independent UK studios, with all parties contributing £20,000 to the project, and is expected to be self-sustaining after the first year.
Backed by NESTA, if successful it's hoped the project can provide a model for similar consortia in the future.
"I am thrilled to be asked to help build this exciting new venture from scratch, to prove that there are new and exciting business models within the interactive entertainment space, which reward talented and creative people," said Payne.
"The UK has shown that it has this talent and creativity, and thanks to NESTA's support, we can build a publishing entity by developers for developers."
Interested development studios have until February 14 to submit interest via NESTA's website, but they must have proven profitable success with their own intellectual property, and capable of self-financing development.
"The UK has the world's best developer talent. The Consortium tests how games businesses might work together to exploit successfully their own intellectual property," added NESTA's programme director Jon Kingsbury.