Tecmo has rejected the offer from Square Enix to buy them outright. Instead, Tecmo and Koei have entered into negotiations to develop a merger plan. We’ve seen a wave of consolidation in the global gaming recently, from acquisitions by EA to gain “wholly owned subsidiaries” to the most recent merger of Activision and the gaming arm of Vivendi that formed the Activision Blizzard.

Official statements from Tecmo reflect their feeling that a merger will allow them not only greater growth potential but would also give them a greater opportunity to boost their corporate value. A merger would also allow greater respect of each individual company’s identity and create an environment in which each company’s employees can best exhibit their skills.

The two companies plan to come up with a complete merger plan in the next two months. Perhaps down the road we will see Dead or Alive Extreme Dynasty instead of Ninja Gaiden Quest.

- Patty Estill