Sega Europe has signed up Finnish studio Bugbear to make the handheld version of its arcade racing game Sega Rally.
Bugbear is well known as a racing game studio, thanks to its work on FlatOut 1 and 2. It has also produced Rally Trophy (2001), Tough Trucks (2003) and N-Gage arcade racer Glimmerati (2005). The studio is currently finishing FlatOut Ultimate Carnage for Xbox 360 and working on other ]unannounced console, handheld and PC projects.
Bugbear will build the new Sega Rally game from the ground up, recieving guidance along the way from Sega's Birmingham, UK-based Racing Studio, which is making the next-gen console versions of the title.
The PSP game is due out in September.