Both companies agreed to the merger after Tecmo declined the takeover bid from the larger company, Square Enix earlier this year. According to Tecmo, Koei will "give [them] a greater chance of boosting corporate value."
Fierce competition within the gaming market alongside escalating costs for marketing and development have led game companies to seek alliances in order to decrease cost and increase profit.
The companies are projecting that the merger will generate an operating profit of over 16 billion yen by the year ending March 2012 with sales reaching 70 billion yen.
So in the end is there only going to be like four videogame publishers? We're becoming like the film and music industries. It was probably inevitable but still a bummer.
Nah, as the old wood rots away new trees grow.