Amusement arcade operator Whimsy Entertainment has teamed up with two Japanese firms to launch its first software game for home computers which could generate sales of US$200 million.[should read HK$200million].Managing director Yoshiaki Iwasawa said the game, to be released in July, was jointly developed by software designer Whoopee Camp and Sony. 'Whimsy is to invest at least $15 million in the production of the software discs,' he said. 'The first batch of production will be or 500,000 copies.' He said Sony was responsible for distributing the discs to Japan, the US and Europe. He claimed that for every 500,000 copies produced, about 370,000 could be regarded as net profit. The venture will launch two titles which feature non-fighting games each year. Mr Iwasawa said the profit contribution from the new venture would be significant in the 1997-98 financial year. Whimsy's first-half net profit plunged 56.9 per cent to $5.48 million after a substantial write-off arising from the closure of two amusement arcade operations in Taipei. Mr Iwasawa said the company had increased the trading volume of machine games in Taiwan in the second half to compensate for the loss in arcades, which account for 45 per cent of the Taiwan operation's turnover. In Hong Kong, the company said it planned to invest about $10 million to add two new Whimsy Kids centres aimed at small children only, unlike Whimsy Centres which are suitable for families. In China, where revenues from inland operations have not met expectations, Mr Iwasawa said the market was still lucrative, especially in coastal areas. 'The one-child policy has benefited us because parents are more generous in letting their kids play our games,' he said. The company has 15 amusement arcades in China and is negotiating to open more.