Wow, this is crazy stuff. Looks like the proposed takeover of Tecmo by Square Enix isn’t going to happen, because the ailing Tecmo has just started talks with Koei and the two companiesare set to merge.

With Tecmo’sNinja GaidenandDoAseries popular in the West, and Koei’sMusougames popular in the East, the two companies are hoping to balance each other out. Here is the official statement from Tecmo:

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As the game industry environment changes with high-powered hardware, portable game machines and rapid growth as well as online mobile games, the accelerating consumer needs are varied and sophisticated. The industry has intensified. Multi-platform and the importance of overseas markets is pushing the industry towards global competition.

…Under these circumstances, these two companies have excellent financial positions, strengths and the ability to take advantage of each other to improve profitability and solidified the foundation of a worldwide leader.

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So, Kekmo? Tecmoi? Will we see Ryu inDynasty Warriorsor THE LU BU inNinja Gaiden? This is not something I expected to see this morning, one of my favorite publishers in Koei merging with Tecmo. Hey, maybe this means Sun Shang Xiang can be in aDoA Beach Volleyball. THEN I’ll get to see her wobblebombs for sure!

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