The game business is hard. To keep from getting bought up and shore up development costs, Temco is in talks to merge with Koei. Tecmo is best known for its Dead or Alive and Ninja Gaiden franchises, which should help flesh out Koei's portfolio that is largely dependent on hack-and-slash Dynasty Warriors. Kenji Matsubara, president of Koei, explains this necessity to consolidate with Tecmo:

In the 3 trillion yen ($28 billion) global games market, we have revenue of 40 billion yen, which begs the question of whether we can survive... We plan to make the most of this merger and move on to the next step.

Continuing, Matsubara assures that the recent stock market troubles will not effect the merger.

Koei Plans to Form Holding Company With Tecmo in 2009 (Update2) [Bloomberg via Edge]

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