Activision has announced that is has purchased UK-based Bizarre Creations.

"The racing game market is worth $1.4 billion and it is the fourth most popular video game genre, representing more than 10 percent of the global video game market, Activision said.

The company said its latest purchase is part of its plan to enter new gaming genres. Last year, Activision bought RedOctane's Guitar Hero franchise, which has become one of the fastest-growing video game franchises.

Bizarre Creations develops "Project Gotham Racing," a series for Microsoft's Xbox and Xbox 360. It is also finishing development on "The Club," a third-person action game for Sega. Bizarre's employees and management will continue working with the company.

Activision expects that its first game from Bizarre Creations will be released after fiscal 2009, which ends in March of that year."