Artificial, which has operated in Gainesville for two years, was in talks with England-based Ignition for full production of a prototype title when the companies decided to merge. Artificial founder Jeremy Stieglitz would not divulge too many details concerning the studio's latest project, but revealed that it was an action game for the current console generation.

"It's using physics in a way few action games have before, the way you can interact with the environment and use the environment as a weapon," said Stieglitz.

Ignition is renovating a new office in downtown Gainesville to accommodate the 65 to 70 employees it plans to hire as part of the merge. A PlayStation 3 port of Monster Madness, retitled Monster Madness: Grave Danger, is being developed by Psyonix and is expected for release this summer.