Video game makers deny merger talks

Video game manufacturers Nintendo Co. Ltd. and Sega Corp. vehemently denied a New York Times report today that the companies are in talks to merge.

The New York Times reported Wednesday morning on its Web site that Nintendo Co. Ltd. is in talks to acquire rival Sega Corp.

Quoting executives close to the negotiations, the newspaper said the two companies are holding talks that could lead to Nintendo acquiring Sega for around US$2 billion. Terms of the transaction are still under discussion and the talks, which have been going on for months, could still collapse, said the report.

Both companies vehemently denied the report.

“It is completely false and we would like to say there are no such talks,” said Sega spokeswoman Miho Masuda.

Nintendo said in a statement that it was “100 per cent not in talks to acquire Sega.”

The newspaper reported that Isao Okawa, chairman of Sega, has been looking to sell the company for some time and has even held talks with Microsoft Corp., which is keen to enter the consumer computer games business and is planning its own console, the X-Box. Microsoft announced launch details of the console last week.

Sega has been fighting a fierce battle in the consumer game console business ever since Sony Computer Entertainment Inc. entered the market several years ago with its PlayStation console. The company overnight began eating into the market share of Sega and rival Nintendo, which at the time had the market almost to themselves. While Nintendo fought back with its N64 console, Sega has been struggling.

In late November, the company reported a worse than expected operating loss of 32.5 billion yen (US$287.2 million) for the six months to the end of September. The company said price cuts on the Dreamcast console put pressure on earnings.

Sega Corp., in Tokyo, can be contacted at http://www.sega.co.jp/. Nintendo, in Kyoto, can be contacted at http://www.nintendo.co.jp/.

Would you recommend this article?

Share

Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.


Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Articles

Cybersecurity in 2024: Priorities and challenges for Canadian organizations 

By Derek Manky As predictions for 2024 point to the continued expansion...

Survey shows generative AI is a top priority for Canadian corporate leaders.

Leaders are devoting significant budget to generative AI for 2024 Canadian corporate...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now