Sony Computer Entertainment America has agreed a deal with thatgamecompany, developer of downloadable PlayStation 3 game flOw, to produce additional titles.
The three-game deal will see the former University of Southern California (USC) students moving in at Sony's Santa Monica headquarters.
flOw, originally released a Flash-based web-game, is due to be sold via download through PlayStation 3's online store from December 19.
USC Dean Elizabeth M. Daley described Sony's arrangement with thatgamecompany as "a watershed moment in the history of the school".
"It builds on our tradition of expanding relationships with the professional community, and opens the door for our students and graduates to showcase their creative talents in an incredibly dynamic market."
The original PC game flOw, originally created as part of thatgamecompany co-founder Jenova Chen's thesis research, can still be played online on the developer's website.