VR-1 Inc. has acquired two video game development companies, Devil's Thumb Entertainment Inc. of Colorado and POW Games of Japan.

The move allows VR-1 to enter the $3.7 billion console game industry, where it will compete against console systems such as Sega's Dreamcast and Sony's PlayStation II.

Both Devil's Thumb and POW Games are now wholly owned subsidiaries of VR-1, and will focus on designing multiplayer online video games.

More information about VR-1 can be found at

http://www.vr1.com .