Namco to merge with Sega?

The two arcade giants are apparently in talks over a possible merger.

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According to the Nihon Keizai Shimbun, Namco has reportedly engaged in talks with Sega over a possible merger. A merger between Sega and Namco would result in the largest video game company in Japan, with sales totaling 350 billion yen ($3 billion), topping Konami's sales figures, which are currently at 250 billion yen ($2 billion). Namco said that the merger would be necessary in order for the company to remain competitive and that a merger would let Namco consolidate many of its current facilities as well as improve its business in international markets. In addition, Namco believes that combining the intellectual properties and development teams of the two companies would also be highly beneficial.

Sega is scheduled to hold a meeting to discuss mergers with three of its current suitors, including Sammy and Electronic Arts, which are reportedly interested in investing in Sega or at least doing some sort of tie-in with the company. Sega's board members are reportedly less interested in merging with Sammy due to its focus on pachinko machines, which has delayed talks with that particular company. Sega is expected to make an announcement as soon as the end of this month.

We'll have more as it develops.

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