Namco has announced plans to establish a daughter company dedicated to the development of its Tales series of role-playing games. The new subsidiary--named Namco Tales Studio--will be funded 60 percent by Namco and 40 percent by Telenet Japan, the codeveloper of the Tales series. Namco's consumer software sales department leader, Kiyoshi Nagai, will become the new company's president. The company was created on March 10 but will not begin operating until April 1. Namco representatives said that the company plans to release a new game in 2003. This will be the second game-development subsidiary that Namco has made. The first was Monolith Soft, established in 1999, which was the development team behind Xenosaga. A new game announcement for the Tales series is expected next week.