Tecmo and Koei in merger talks

Despite a generous takeover offer from Square Enix, Japanese game developer Tecmo has set in motion plans to merge with fellow developer/publisher Koei.

According to a statement released by the company and posted on Kotaku, it collected opinions from ‘management, game creators as well as a wide range of employees’, but did ‘not arrive to agree to [the Square Enix] proposal’.

Soon after, it released a second statement announcing the intention to merge with Koei, saying that the two companies had commenced a tentative merger and had established an ‘Integrated Management Committee’. Apparently, both companies are looking to balance their portfolios – with Tecmo’s Team Ninja games popular in the West and Koei’s Dynasty Warriors popular in the East – and are keen to maintain each company’s individuality.

The second statement read: "As the game industry environment changes with high-powered hardware, portable game machines and rapid growth as well as online mobile games, the accelerating consumer needs are varied and sophisticated. The industry has intensified. Multi-platform and the importance of overseas markets are pushing the industry towards global competition.

"Under these circumstances, these two companies have excellent financial positions, strengths and the ability to take advantage of each other in order to improve profitability and solidify the foundation of a worldwide leader."