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Tecmo, Koei in merger talks

Spurning Square Enix's offer, the Ninja Gaiden-maker is reportedly considering a union with the Dynasty Warriors publisher.

156 Comments

Last week, Square Enix sent waves through the game industry by announcing a "friendly" offer to buy Tecmo for around $200 million. The unsolicited bid would've added the action games of the troubled latter, which includes the Ninja Gaiden and Dead or Alive series, to the massive role-playing portfolio of the former, which features the Final Fantasy and Dragon Quest series.

While Square Enix's offer put a generous 30 percent premium on Tecmo's stock, it also had a firm deadline of Thursday, September 4. Today, Tecmo president Yasuharu Kakihara rejected it outright, according to the Reuters news service. Instead, the publisher announced is in talks to merge with another Japanese game label, Dynasty Warriors-maker Koei.

"Through a merger, we expect we can grow further by respecting both companies' identities and having an environment in which employees can fully exhibit their skills," the two companies said in a joint statement. Kakihara also said he would not consider another offer by Square Enix, which is considering its next move.

Tecmo shares rose 7.5 percent to ¥937 (around $8.70) on news of the merger, with Koei's stock climbing 0.3 percent to ¥1,552 ($14.41) and Square Enix stock sliding 1.9 percent to ¥3,550 ($32.96). Trading of both Tecmo and Koei shares were halted by the Tokyo Stock Exchange before the closing bell.

Financial details on the Tecmo-Koei merger remained unclear as of press time. However, even a union of the two companies would be around 30 percent the size of Square Enix, with just ¥40 billion ($371 million) in sales. It would also mark the latest round of consolidation in the Japanese game industry, which saw the formation of Namco Bandai in 2005, Sega Sammy in 2004, and Square Enix in 2003.

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Dynamo321

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@Ra-Devil I don't see how they are a rehash every time; do you even read words in a game? These games revolve around something called a STORYLINE if you don't like story driven games; continue to play NG and DOA and don't complain about games you obviously have so reason to play.

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Dynamo321

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I love koei, they have made some great games. They don't care about the NA market however.

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Ra-Devil

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[This message was deleted at the request of the original poster]

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Ra-Devil

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gacmyver Dude, I never knew any of that about FF, but even I still think FF is just a rehash every single time. The combat systems were exactly the same untill FF IX, and even the stuff other than combat, all the stuff you made reference to, were barely any different. They were just presented differently, but that didn't change the fact that it was a turn based RPG that played exactly like the previous game for over 10 years. I loved FF 1, and a thought FF 7 was okay, but the others I just skipped over as they felt exactly the same. Ooh, Materia... and a few other systems that accomplish the same thing each time, just by differnt means. I don't like that idea. As for DOA and DW never changing, fighting games never change that much sadly, but DW... yeah, it sucks, we all know it, and if someone denies it, it's because they like only having to press one button to defeat legions of mentally challenged people whose only crime is that they stand in circles around you... I mean really, how do they get away with letting you kill mentally challenged people? I'm appaulled. I don't like Square Enix that much, though I can't deny their success, I don't like Koei even slightly, and I can't believe that Tecmo is needing to merge with another company to keep afloat. I love DOA and Ninja Gaiden too much to let them go or get poisoned.

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BloodWerewolf

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Koei and Tecmo? No, thank you.

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madd_hatter

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WOW! I DEFINITELY wasn't expecting that? I mean i like Koei and Dynasty Warriors, but WOW! What a horrible decision on Tecmo's part.

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Henninger

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i dont even think i own a Koei game.

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metabolic_youth

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Tecmo coud be looking for leverage in dealings with Square/Enix or possibly pulling a Yahoo on Square/Enix by having talks with Koei. If their serious about Koei it could mean they feel Koei is more compatible with their company than Square/Enix.

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lostboy85

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Oh yeah, I always seem to forget about Koei. Well good for them, I suppose they need a little positive press once in a while. Because announcing a new Dynasty Warriors doesnt count anymore.

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Threesixtyci

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I think Koei is better known in Europe, where they publish most of Atlus' games to.... such as Persona 3 for example.

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Nerissa

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If I was Square Enix I wouldn't care if Tecmo rejected the offer, its their loss...

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decoy1978

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Yes, KOEI is decently big in Japan. Decent enough that their stocks are worth MORE than Tecmo. Over in the US they aren't popular, but in Japan their ROTK series has ALWAYS done well. But they don't just do ROTK, they also deal in horse-racing sims and are still big in arcades. Tecmo is widely known for their Ninja Gaiden series and thats just about it. This merger if it were to happen would greatly benefit both parties.

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ryosashi

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wow so they are joining another tiny pointless company...great here comes quicker dynasty warriors. Koia has squat right now, and like it says even together they are worth 30% of SE. i was hoping they would take the SE offer, i mean come on, a huge budget on there big games like nija giden and mabey a truely great monster rancher with SE's help. o well there goes that cool stuff, on with the mediocridy...they just didnt wanna lose there name...sad.

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peeweeshift

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list of opinions i have on the article -square doesn't need tecmo to survive, square just needs to release their own action games once in a while. -tecmo shouldn't have rejected cause they need the help after losing their president and more importantly Mr Itagaki -Namco Bandai needs to get rights to power rangers and make a mighty morphin game :P -(looks at iron phoenix and crys)sega sammy could have been so much more but they are so lazy and don't do bug testing.

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Ra-Devil

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Koei??.... KOEI???... Sooo, is Koei actually big in Japan or something? Because I don't know anybody that brings us Koei and says, "Man, they did that one awesome game," we all usually say, "Man, Dynasty Warriors sucks more balls than a hooker."... I'm not making that up, we really do. I mean, other than DW, what does Koei make? I could use Google, but 2 or more games usually come to mind when I think of a developer... nope, nothin'. Just DW. That's kinda sad really. Sega and Sammy were both good Devs, Enix was a pretty good dev and Square was a giant dev, and Namco and Bandai were both really powerful at one point or another, and now we have Tecmo, whose Team Ninja games I love to death, and Koei, who can't do ****. Why not Atlus, at least I can think of a game or 2 they made that I played and didn't call complete garbage. I don't know. I just don't want to see future Team Ninja games turn out to be comeplete garbage. I want more great DOAs and other great games (Itagaki said there wouldn't be anymore Ninja Gaidens, but he's not there anymore, sooo).

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gamemaster004

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WTF... Why the h**l didn't Techno take that offer. I mean I love dynasty warriors, but they need to mix it up more. Square-Enix would have brought new creativity to and old idea, but all we can do is wait and see what is gonna happen with this!

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player_leo

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Could we see a Dynasty Warriors: Dead or Alive ? Maybe....

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Kvain

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Gotta say, that last paragraph is slightly hilarious-- "...even a union of the two companies would be around 30 percent the size of Square Enix." :p

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otanikun

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Would have been better with Enix but I still say they should have sunk, it's their fault for putting themselves in such a bad position that their stocks are dropping like Brittany Spears career and looks. But Koei isn't a bad choice I suppose, more power to em I guess.

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stretchngrowl

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I don't see this as being that bad of an idea. To be honest, Square-Enix doesn't need Tecmo to cramp their style while they count their ungodly amount of money, whilst sitting on thrones created by the corpses of FF7 cosplayers. I'll be the first one to admit that a major flaw in my gaming taste comes from me having a strong affinity towards dynasty warriors games. Imagine, for a second, if these games were supported by a company that is GOOD at making hack and slash action games. Capcom has the Devil King franchise, a complete copy of the Dynasty Warriors formula, which is really good (I've only played the first title, which was released in the states for the PS2). Get some of that wonderful hack and slash excellence into a Dynasty or Samurai Warriors game and I won't be so embarassed to admit liking them.

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BigSweetc

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Tecmo stuff on the PC ,...thats 's awesome !I could not care less for Square Enix .A merge between the two could result in some magnificent gaming experiences !!!!Can't wait to see further developments !

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Aurey

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This is disappointing, I expected Tecmo to accept Square Enix offer. It's all right if they look for more options to merge their company, but why Koei? Just hope the guys at Tecmo get things right again and reconsider SE proposal. In the end it would be a lot more interesting to see them as part of Square Enix.

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gacmyver

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@centuryslayer you must be stupid, FF series renews itself in terms of world, story, characters and the battle system/mechanics. you are really effing stupid centuryslayer, blabbing out stuff you dont know crap about. dont talk about stuff you dont know anything about while trying to be cool man. ff6 - ester system ff7 - materia system ff8 - junction system (one of the most complex systems) ff9 - crystal system ff10 - grid system, and count time battle (which ea lotr ripped off, shame on them) ff12 - gambit system they all play differently, although granted the materia and crystal system resembles. but not ANYTHING like dynasty warriors or dead or alive, which basically is teh same game with more characters and few new moves and in dead or alives case, jigglier breasts. centuryslayer, you need to stfu, you just go pwned.

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Devil_Vergil

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You have GOT. . . . to be kidding me *twitch*

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Superdude687

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ew Koei?

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ZimpanX

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Ew, not Koei. :S

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itwiz90

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What kind of constraints did Square want to put on TECMO? The following statement - "Through a merger, we expect we can grow further by respecting both companies' identities and having an environment in which employees can fully exhibit their skills," to me means Square added something ugly to the mix and TECMO felt they were being mistreated and not respected as a force in the gaming industry. WOW!!!!!!!!!! 8)

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PSdual_wielder

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Tecmo and Koei are both probably the weakest japanese dev right now. Its not like if these two merged they can bring anything better to the table. Tecmo at least has 3 really good franchises, Koei just focuses on quantity over quality of their games.

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Them_Apples

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I'd prefer to see Tecmo merge with a company that had done more than regurgitate the same game for the past 8 years. I shudder to think what would happen if Tecmo was incorporated into the Koei business model. From the perspective of gamers, the experience would be effecively the same as losing Tecmo altogether.

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Old_Gooseberry

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DOA RPG HAHA I wish they'd sell out, it'd be funny to play

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zomglolcats

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While I think Koei stopped making good games since the original Dynasty Warriors and Romance of the Three Kingdoms series, read this line people: "Through a merger, we expect we can grow further by respecting both companies' identities and having an environment in which employees can fully exhibit their skills," I think Tecmo was afraid of being swallowed up by Square Enix and just being a minor player. Not sure why they would really want to merge with Koei of all companies, but to them, that is a better option than being swallowed by a giant.

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supersonic125

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no one cares about this gamespot, u read

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jcloverboy

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I'd personally prefer Square's offer to get accepted. I don't see Koei as a viable option for Tecmo. More of a lateral move.

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Timstuff

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I can't believe that Tecmo would merge with a company as crappy as Koei (or for that matter, that Koei's stock is more expensive). Koei does nothing but release the same crap Dynasty Warriors game over an over again with a new box. Square's offer was very generous and would have put Tecmo and their employees in a very competetive position in the game market, not just in Japan but around the world. I tried being supportive of Tecmo up to this point, but from here on out I think they probably deserve whatever happens to them.

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dth_dlr

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tecmo should have accept square enix's offer, it was fair

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centuryslayer

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Timstuff. and tecmo just releases the same old NG and DoA games over and over. and Square enix does the same. the only difference is the budgets of the respective companies ~~ to me FF is as repetetive as DW. it's just a matter of personal preference on which you like the most. which is pretty unimportant when discussing repetetivness.

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O2k4

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just a bunch of people who don't want to lose their jobs. obviously if enix take over tecmo they will change for sure the organigram.

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aots_twilight

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My mind is going wild with imagining the possibilities on how the games would end up if Tecmo either accepts the Square Enix offer or merge with Koei.

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aots_twilight

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[This message was deleted at the request of the original poster]

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Timstuff

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Koei sucks. What do they make other than a million rereleases of Dynasty Warriors? Tecmo should have went with Square's offer; it was probably more than Tecmo is actually worth.

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ColdfireTrilogy

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I think techmo felt like joining with Square would just make them another fish in the pond since square is so huge it would pretty much engulf the little company. Their merger with Koei is a much better deal imo because it still helps them remain very independent of the "big corporations" that are coming out these days in gaming. As much as i LOVE square and their games, i would say this is a better descision for Techmo in the long run.

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centuryslayer

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sorry alot of spelling errors. it should have been Infused at the last part, not unfused xD

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centuryslayer

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hopefully they don't drag Koei down with them. it's bad enough that one japanese gaming producer that focuses on the west aswell is in a bind. and I agree with you guys that it would have been better/more exciting if they had joined Squeenix. they are more different and would probably have injected each other with more variety. hopfully they both Koei and tecmo get unfused with some innovation now, though none of them are really famous for that ~~

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Antinash

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Tecmo and Square could do great things together. Do the right thing Tecmo.

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BigC43

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That would be an interesting solution for Techmo. I could see it being a good thing.

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Timstuff

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Boo! Koei sucks! Tecmo should have gone with Square Enix. We would have at least gotten Tifa as a guest character in Dead or Alive 5.

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theunloved

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I think after all the trouble Tecmo has gone through lately, they need to merge with someone. Though I would have liked to see them go with Square Enix instead of Koei.

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Dixteel

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!!! Very Surprising indeed. But this could be good...

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galerian86

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OMG! What will happened next?!

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Nocturnal15

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Tecmo be smart and merge with Square. You will be subjected to further doom if you merge with LOL koei. ~_~

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