Foundation 9 Entertainment announced that it has combined Shiny Entertainment and The Collective, two of its subsidiaries, into a single development studio in Irvine, California. The company claims that there will be no layoffs as a result of the move and that the new studio will be headed up by Shiny studio head Michael Persson. It is not currently known whether the Shiny and Collective brands will be retained in any way.

Shiny is known best for the MDK and Earthworm Jim series, as well as Enter the Matrix and The Matrix: Path of Neo. It is currently working on The Golden Compass, the game adaptation of the film adaptation of the first book in His Dark Materials series.

The Collective is known for creating Marc Ecko’s Contents Under Pressure and Wrath Unleashed; they are currently working on Silent Hill 5.

Foundation 9 Entertainment, North America’s largest independent developer, has become the world’s largest independent game developer thanks to their purchase of Amaze Entertainment and all its studios.

Amaze, established for ten years now, has developed nearly 100 titles since its inception, including several version of “The Sims”, as well as titles based on popular film franchises such as “Harry Potter”, “Lord of the Rings” and “Pirates of the Caribbean”. The company has recently developed the handheld versions of “Eragon”.

The transaction will see Foundation 9 expand its already mighty empire - The Collective, Backbone Entertainment, Shiny, Digital Eclipse and others - and see a combined entity that employs over 725 people across eleven studios, producing more than 30 SKUs. It is currently working on a DS version of Death Jr., Dirty Harry and Sonic Rivals.

Get ready to dig your teeth into next-gen consoles, all thanks to The Collective who announced Harker, a vampire-hunting game for the PS3 and Xbox 360.

Inspired by ‘Dracula’, the classic horror novel, the game has players take on the role of a “very different” Jonathan Harker, who is vengeful against the creatures of the night after his wife falls victim to Dracula. The gameplay will see players tracking down and hunting these ferocious killers, making use of an “up-close and personal” combat system, using a variety of weapons and environmental factors.

“‘Harker’s’ goal is to bring an in-your-face, visceral, and personal style of combat to the survival horror genre,” said Nigel Cook, producer. “None of these vampires are going to die with one shot. They’re going to fight for their survival, which will give the player a huge level of satisfaction when they successfully execute one.”

“Harker” will bring to life the underbelly of the 18th Century World, taking players into diverse locations, areas never explored in history books, in a gritty, realistic art style that will fully immerse players in their environments. The game also features an incredible roster of blood-thirsty, shape-shifting vampires each with their own savage abilities, sometimes hiding in plain sight; the player may never know just how close they are.

Harker is set for release sometime in 2008. The Collective, a division of Foundation 9 Entertainment, is also working on Dirty Harry, as well as other unannounced projects.

Financially troubled publisher Atari has announced the completion of its strategic internal studio divesture, revealing the sale of Shiny Entertainment to Foundation 9 Entertainment.

Shiny Entertainment is responsible for quite a few high-profile games, including the atrociously atrophied Enter the Matrix and, more recently, The Matrix: Path of Neo. As part of the deal, Atari will retain its current project planning formerly developed by Shiny, including Earthworm Jim. It is not known if there were any changes at Shiny following the transaction.