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Sega: Pachinko Slots Deal Falls Through
33 minutes ago Add Technology - AP to My Yahoo!
TOKYO - Japanese video game software maker Sega Corp. said Thursday that merger plans with Sammy Corp., a maker of pachinko slot machines, had fallen through.
The two companies had been negotiating to integrate operations since February. But Sega called off the talks as it became clear the combination would not provide the benefits the companies had first anticipated, Sega said in a statement.
Sega, famous for Sonic the Hedgehog, announced last month that it was studying a similar offer from rival Namco — a proposal that would create the biggest video-game maker in Japan.
Sega spokeswoman Nana Ishizawa said negotiations with Namco were being carried on separately and no decision has been made.
Trading of Sega and Sammy shares were temporarily suspended on the Tokyo Stock Exchange Thursday morning.
Media reports have speculated that Sega's potential suitors also include big names like software giant Microsoft Corp., which makes the Xbox (news - web sites) game console, and Electronic Arts, a Redwood City, Calif.-based game maker.
Once a major pioneer in its field, Sega has watched its brand image lose luster in recent years as gaming became dominated by Japanese rival Sony Corp (news - web sites).'s PlayStation 2 (news - web sites).
Sammy makes pachinko, a popular vertical pinball game played in parlors across Japan. The company is trying to expand into video games.
Sega posted a 17.8 billion yen ($149 million) loss last fiscal year, its fifth straight annual loss, but expects to return to profitability in the fiscal year ending in March. Sammy reported a 23.9 billion yen ($201 million) profit in fiscal 2001, while Namco's profits totaled 2 billion yen ($17 million).
Sega: Pachinko Slots Deal Falls Through
33 minutes ago Add Technology - AP to My Yahoo!
TOKYO - Japanese video game software maker Sega Corp. said Thursday that merger plans with Sammy Corp., a maker of pachinko slot machines, had fallen through.
The two companies had been negotiating to integrate operations since February. But Sega called off the talks as it became clear the combination would not provide the benefits the companies had first anticipated, Sega said in a statement.
Sega, famous for Sonic the Hedgehog, announced last month that it was studying a similar offer from rival Namco — a proposal that would create the biggest video-game maker in Japan.
Sega spokeswoman Nana Ishizawa said negotiations with Namco were being carried on separately and no decision has been made.
Trading of Sega and Sammy shares were temporarily suspended on the Tokyo Stock Exchange Thursday morning.
Media reports have speculated that Sega's potential suitors also include big names like software giant Microsoft Corp., which makes the Xbox (news - web sites) game console, and Electronic Arts, a Redwood City, Calif.-based game maker.
Once a major pioneer in its field, Sega has watched its brand image lose luster in recent years as gaming became dominated by Japanese rival Sony Corp (news - web sites).'s PlayStation 2 (news - web sites).
Sammy makes pachinko, a popular vertical pinball game played in parlors across Japan. The company is trying to expand into video games.
Sega posted a 17.8 billion yen ($149 million) loss last fiscal year, its fifth straight annual loss, but expects to return to profitability in the fiscal year ending in March. Sammy reported a 23.9 billion yen ($201 million) profit in fiscal 2001, while Namco's profits totaled 2 billion yen ($17 million).
(but, ofcourse, would never happen).
