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No Sega and Namco Merger

by Steven Rodriguez - May 5, 2003, 5:20 pm EDT
Total comments: 7 Source: Japan Times Online

Sega will join forces with Sammy after all, so the Sega-Namco crossovers will need to wait for now.

In February, Sega's parent company CSK, announced that would go after a merger with Sammy Corp., creators of the Guilty Gear series. A few months later, Namco expressed interest in acquring Sega, and soon set a May 9 deadline seeking Sega's decision.

Sega didn't need that long, though, and a decision has been made: Namco's offer has been turned down, and the original deal with Sammy will go through. The reason for this move is that CSK feels that Sammy is stronger finacially, and that the move would make more sense for Sega, who also has stakes in non-videogame markets, as does Sammy.

While the Sega and Sammy merger still isn't set in stone, it's still likely to happen after three months of talks. E3 may reveal more information about this merger mess, and if it does, we'll have it for you.

Talkback

PIACMay 05, 2003

oh, i thought the sega namco merger went ahead, blimey

Locke ColeMay 05, 2003

I thought that there was a annoucement from them both that they were merging. Maybe something else will be annouced at E3...

KulockMay 05, 2003

Didn't Sammy publicly attack and downplay Sega after the talks with Namco were revealed?

Edit: Ah, it's not so public, it seems, the exec was unnamed:
GamerFeed Story

DjunknownMay 05, 2003

"the move would make more sense for Sega, who also has stakes in non-videogame markets, as does Sammy."

Pardon my ignorance, but what else does Sega do besides Video Games (Arcade and Console, some PC)? Even so, Games are still Sega's bread an water (or Sushi and sake if you will) so what else can Sammy do for them? Unless they want to shift their focus....

A couple other dumb questions:

1) I'm gonna go on a limb and say Sammy doesn't have a strong presence in the U.S.A or Europe (Sega just recently opened a publishing department in Europe) So while it'd strengthen them in Japan (I guess that's most important since it is a Japanese company) what about overseas??

2)Aside from Guilty Gear, what else does Sammy do in the game department?

3)Wouldn't it make more sense to merge with a company that (unless it slipped my radar) is doing OK despite flagging economies? (Capcom was recently victim, as they are looking for someone to but them out.) That can offer longterm security not only at the home base but overseas?

Of course this is just my Western mind at work, and I admit to reading more Gamepro than I do Forbes or Nihon Keizai Shimbun. Maybe I should start....

BlkPaladinMay 05, 2003

CKE, which owns Sega is sort of like Vinvide (or what ever they are called, who owns Blizzard.) They run a restaurant chain, and venture capital firm, and other things.

Sega wants a partner that does well in Japan. And right now Sammy is better than Namco in this regards. I think Sammy makes stuffed toys (oopps that Tommy...)

Uncle Rich AiAiMay 05, 2003

I standed by my comments about the Sega and Namco Merger thread in the GameCube section, not believing it was true until it was reported on major gaming site.

BlkPaladinMay 06, 2003

It was somewhat telling though that they were going to hold off until they found out if the Sammy merger was going to go through.

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