Firm also planning branded bags and stationery as redemption prizes.
Withit has signed up Sega Amusements Europe to produce a line of character plush for the leisure industry.
The deal means that characters including Cheeky Monkey, Glamour Puss and Mad Cow will appear as special soft toy prizes in machines at amusement parks, holiday parks and leisure locations across the UK, Europe, Russia and the Baltic States from spring 2011.
There will be six designs.
In addition, Sega is also planning a range of Withit-branded bags and stationery as redemption prizes against special tickets paid out by certain games machines.
"We are expecting a strong response from both our national accounts in the leisure industry and from users of games machines to the introduction of the Withit characters to their prize opportunities," said Trevor Clarke, head of merchandise division at Sega Amusements Europe.
Brad Caines, Withit's creative director, added: "The leisure industry is an obvious outlet for a range with a wide ranging appeal across a number of categories - but we needed to ensure we had the right partner. The experience and reputation for quality of Sega in the leisure and games business, combined with the style, wit and originality of the Withit characters, is we feel a perfect combination."