PROPE (pronounced: pro-pe) is an independent game development studio founded by former SEGA designer Yuji Naka. The company is partially funded by SEGA as part of a "support program for Independent Game Creators".
Ten members of SEGA's Sonic Team joined Naka at PROPE, which has a starting capital of 10 million yen (10% of which comes from SEGA). SEGA can exercise a "first dibs" option for publishing games made at PROPE, though if SEGA rejects a title produced by the new studio, Naka would then be free to approach other publishers. [http://forums.idlethumbs.net/showthread.php?p=59275
The new company was announced on May 8, 2006, and has yet to release details on any current projects in production.