Tecmo And Koei In Talks To Merge

Illustration for article titled Tecmo And Koei In Talks To Merge

Click to view On the heels of rejecting Square Enix's "friendly" takeover, Tecmo announced a merger with Japanese game maker Koei is in the works. Today, talks between both companies commenced for a tentative merger, and an "Integrated Management Committee" was created. Both companies hope to balance each other's portfolios — Tecmo is popular in the West with its fighting franchise Dead or Alive and action series Ninja Gaiden while Koei is popular in Japan (and Asia) for its historical hack-and-slash Dynasty Warriors. From the statement issued by Tecmo today:

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 is 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 solidified the foundation of a worldwide leader.

The statement also acknowledges that both companies are in talks with the aim to integrate management in the future in hopes of creating a "stable and secure environment" as well as respect each other's individuality.

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Koei? Why? What's their motivation?