Jaleco Holdings have announced that it has sold its Jaleco games division to online games company Game Yarou.

Jaleco Holdings has sold off its video games subsidary Jaleco to Game Yarou, in a deal worth just �1 (around �0.008). The parent company shifted all of Jaleco's assets to Game Yarou on January 15th, in a move which sees Game Yarou take on nearly eight million dollars of Jaleco's outstanding loans.

A spokesperson for Jaleco Holdings explained the decision, and claimed that it was due to "increasing competition in recent years in the video game market". The games company was notable for developing Bases Loaded, as well as the incomplete, stylistic Wii action-RPG Kizuna.

There has been no official announcement regarding the fate of Kizuna or any of the company's other projects in development.