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Background: Virgin Games was a British game developer and publisher formed in 1981 as Virgin Games, as part of Richard Branson's brand empire Virgin. The company focused on video games for computers and also held its own development teams.
In 1987, the company purchased Mastertronic and renamed themselves as Virgin Mastertronic. After this division was sold off to Sega in 1991 after the intense success of the Sega Master System in the country (which they distributed), the publishing side was renamed back to Virgin Games, which in 1993 was renamed Virgin Interactive Entertainment to expand on just video games in general. The company's US division purchased developer Westwood Studios in 1992 and formed another development team Burst Studios in 1995. By this point, ownership had transitioned from the Virgin Group over to Spelling Entertainment Inc. That same year, its London-based division formed a development team that would be later named Crimson Studios.
In 1997, Spelling announced they would divest their ownership in Virgin Interactive. With this, the assets were split up and sold off. The North American division was sold to Electronic Arts as part of their purchase of Westwood, while the European division was purchased by its management. Interplay Entertainment and Titus Interactive soon purchased stakes in the business in 1999, with Titus acquiring 100% ownership in 2001.
At the end of 2002, Virgin downgraded to becoming a distributor only and was soon renamed as Avalon Interactive in August 2003. In January 2005, Titus filed for bankruptcy which led to Avalon Interactive eventually ceasing operations at the end of the year. The Spanish branch of Virgin Interactive was spun off in October 2002 under the name Virgin PLAY.
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