Tecmo, publisher of the Ninja Gaiden and Dead or Alive series, has successfully negotiated a merger with fellow Japanese publisher Koei, and the two will join forces to form Tecmo Koei Holdings, which goes into effect on April 1, 2009.

Koei, the larger company, will hold three quarters of the newly combined publisher, according to Reuters. 20 billion yen ($207 million) in stock will be infused into the holding company at its launch.

Tecmo Koei has put forth a business plan aiming for a profit of 16 billion yen ($164 million) in its fiscal year 2011. Last year, the two added up to a combined profit of 8.5 billion yen ($87 million) each company's fiscal year 2007.

The move was actually started by Japanese publishing giant Square Enix, which made a "friendly" buyout offer to Tecmo in August after the publisher hit a rough patch between employee lawsuits and the departures of president Yoshimi Yasudami and famed designer Tomonobu Itagaki.

Tecmo, to the surprise of many, rejected Square's offer and instead entered talks with the Dynasty Warriors publisher. Koei also found itself in difficult times as the company struggled to transition out of developing PlayStation 2 games.

Japanese game studio Tecmo, publisher of Dead or Alive and Ninja Gaiden, turned heads last week when it turned down a buyout offer from Final Fantasy maker Square Enix only to enter merger talks with publisher Koei.

Now, Tecmo has emerged to publicly respond to failed suitor Square Enix. In a statement translated by Kotaku, Tecmo acknowledged Square's questions which previously had been ignored and added: "To answer Square Enix's proposal within the time frame of one week provided little room for negotiation and discussion."

Tecmo also credited Koei for a better negotiating situation. "Conversely, regarding the proposal from Koei, there is time for management to consider how to integrate and most likely arrive at ultimately raising our corporate value. This is why we have begun talks with Koei concerning corporate integration."

Koei, perhaps best known for its battlefield hack-and-slash Dynasty Warriors series, has found itself in a difficult situation after the peak of the PlayStation 2. In Japan, it's now "very tough for third parties like us to do our business," said Koei president Kenji Matsubara to Gamasutra.

In a more diversified Japanese market, Koei sees itself stretched thin, a problem Matsubara implies may be solved by a merger. "[The market's] in a transition situation ... these days, we have to spend resources on handhelds, popular consoles like the Wii, and high-performance consoles like the Xbox 360 and PS3."

Square Enix, which recently made "a friendly offer" to buy a controlling stake in Japanese publisher Tecmo, has withdrawn its proposal following a rejection from the beleaguered game company.

The Final Fantasy-producing giant isn't done hunting, however. "We are talking with quite a few companies in and outside of Japan. We are routinely in such talks," said Square Enix president Yoichi Wada as relayed by Reuters.

Tecmo, best known for its in-house Team NINJA creations Dead or Alive and Ninja Gaiden, rejected Square Enix's offer yesterday and instead entered negotiations with Koei, the Japanese publisher known for its battlefield hack-and-slash Dynasty Warriors series.

Square Enix publicly asked Tecmo to explain itself, but was ignored. "Followed by the notice, [Square Enix] immediately requested TECMO for explanation of some issues to receive no response to it, even reasons of the rejection," read a Square Enix statement issued today.

The attempted merger was the latest in a string of acquisitions from the mega-studio. Square merged with Dragon Quest developer Enix in 2003, forming Square Enix, and then purchased Space Invaders owners Taito in 2005.

Japanese game developer Tecmo today rejected the buyout offer from Final Fantasy and Dragon Quest owner Square Enix, instead opting to pursue merger talks with Dynasty Warriors veterans Koei.

Both Koei and Tecmo "have excellent financial positions, strengths and the ability to take advantage of each other in order to improve profitability and solidified the foundation of a worldwide leader," according to a Tecmo statement translated by Kotaku.

At the time of the "friendly" buyout offer, Square Enix noted that it would not further pursue the Tecmo buyout if the proposal was rejected.

Whereas Koei is best known for the battlefield-slashing Dynasty Warriors series, Tecmo has been recently defined by its fighting series Dead or Alive and action-heavy Ninja Gaiden games. Both of those franchises were helmed by Tomonobu Itagaki, who recently left the company and sued for unpaid bonuses.

Tecmo's once Itagaki-led studio Team NINJA is still at work though, with three new titles said to be revealed at the Tokyo Game Show.

Monolithic Japanese developer Square Enix today made a "friendly" offer to acquire a controlling stake in Ninja Gaiden and Dead or Alive developer Tecmo, reports Kotaku.

Tecmo has until September 4 to accept or decline the offer, which would see Square purchase a controlling stake at a 30% premium over current stock prices. The two have apparently been discussing the possible takeover since May, with Square Enix adding that it will not continue to pursue its takeover of Tecmo if the offer is rejected.

"Tecmo is a group of excellent creators with proven track-record in the global market, which is a precious human resource of Japan," reads a statement from Square Enix. "We, however, cannot be optimistic about the future of this significant resource, given the current circumstances surrounding Tecmo."

Tecmo recently saw the resignation of president Yoshimi Yasudam, with recent lawsuits accusing the company of denying promised bonuses to famed game designer Tomonobu Itagaki and refusing to pay its staff overtime.

It marks the latest attempt at expansion from Square Enix, which was formed in the 2003 merger of acclaimed Final Fantasy creator Square and Dragon Quest developer Enix. The company then purchased Space Invaders owner Taito in 2005.

Ninja Gaiden and Dead or Alive developers Team Ninja is planning to tackle a new genre in a title aimed for release next year, according to Bloomberg.

Going by details in a Game|Life translation of the report, the game—which recently saw the resignation of former studio head Tomonobu Itagaki—is being developed by Tecmo-owned Team Ninja with the Western market in mind.

"'New game, new genre, new geographical area, new leader' are our four keywords," said Tecmo president Yoshimi Yasuda.

Tecmo's roster of released games include titles best categorized as survival horror, role-playing, third-person action and myriad other genres. With the revealed emphasis on the Western market, a first-person shooter or something similar seems a likely fit for the new title.

The developer appears eager to shift attention away from its current legal woes and back to game development. Following Itagaki's resignation and lawsuit over unpaid bonuses, Tecmo also battled rumors of a massive staff exodus.

As the legal showdown between Japanese developer Tecmo and soon-to-be former Team NINJA subsidiary head Tomonobu Itagaki commences, both sides have submitted contradicting evidence to the court, suggesting something is amiss.

In the lawsuit, Itagaki states he was promised, but never received, a completion bonus for his work on Xbox 360 near-launch title Dead or Alive 4.

As evidence of this, Itagaki submitted a contract that affirmed his claims of a promised bonus. Tecmo offered the court a similar contract as well, but according to Kotaku and IT Media, Tecmo's version of the contract was missing the bonus clause.

At present, the blatant contradiction between the two pieces of evidences has not been addressed. However, contradictory documents in another Tecmo court case suggests that some of Tecmo's official documents contain false information... Read more

Japanese developer Tecmo has issued a statement denying allegations a staff exodus and clarifying details surrounding the several pending lawsuits against the company, reports Game|Life.

The company dismissed rumors that more as many as three dozen members of Tecmo-owned studio Team Ninja left in the wake of departing chief Tomonobu Itagaki, who announced his resignation earlier this month. The former studio lead also filed suit against Tecmo, claiming over $1.4M in unpaid bonuses.

Tecmo noted that the lawsuit filed by two of its employees alleging gross labor violations only directly involves those two specific employees, though it did not address allegations that the legal action represents all the of its 300 workers.

"Although a lawsuit was filed by the two employees, on April 1, 2008... Read more

Embattled Japanese developer Tecmo has filed for a gag order with the Tokyo District Court to restrict former Team Ninja lead Tomonobu Itagaki from speaking further about the several pending lawsuits against the company.

According to Kotaku, the order restricts Itagaki from disclosing or leaking information regarding Tecmo's software and development, using the media to criticize Tecmo products and employees, speaking to the press about Tecmo and making slanderous remarks to third parties.

The latest volley in the developing legal tumult between Tecmo and virtually its entire workforce, the gag order was almost certainly prompted by the Ninja Gaiden II director's very public announcement of his resignation and legal action ... Read more

As previously rumored, more Tecmo employees have filed suit against the Japanese developer in the wake of Ninja Gaiden II director Tomonobu Itagaki's resignation and legal action regarding unpaid bonuses.

However, this most recent lawsuit far, far exceeds the scope of earlier rumors.

Said to represent all of Tecmo's 300 employees, the latest alleges the company of gross labor violations. According to the text of the suit, as translated by Kotaku, Tecmo instituted an illegal "flexible hours" scheme four years ago to avoid paying overtime.

The suit states that Tecmo has routinely ignored over 100 overtime hours per month since the system was implemented, and has falsified documents to... Read more

As many as three dozen members of Team Ninja may be following former studio chief and Ninja Gaiden II (360) director Tomonobu Itagaki after his sudden resignation and lawsuit against parent company Tecmo earlier this month.

According to a report from 1UP, the departing team members will also serve Tecmo with a class action lawsuit over unpaid bonuses for previously completed games. In filing his own lawsuit last month, Itagaki claimed damages of more than $1.4M in unpaid bonuses.

Moreover, the report adds that Tecmo may have violated Japanese law by withholding information about Itagaki's suit from its shareholders. Corporate law in Japan states that any lawsuit filed against a publicly-traded company must be reported ... Read more

Within days of the sudden resignation of Team Ninja lead and Ninja Gaiden II (360) director Tomonobu Itagaki, shares of parent company Tecmo have tumbled more than ten percent in value.

According to GameSpot, Tecmo's shares were trading at 1,102 yen, or roughly $10.50, when the Tokyo Stock Exchange closed on Tuesday. Reports of Itagaki's departure surfaced the next morning, leading share prices to drop to 982 yen, or about $9.36, by the market's close on Wednesday.

Itagaki announced his resignation just before the launch of Ninja Gaiden II, also stating that he had filed a lawsuit against Tecmo over unpaid bonuses and "significant emotional distress" caused by company president Yoshimi Yasuda. The director claimed damages amounting to roughly $1.4M.

"I regret the circumstances that have forced me to leave Tecmo, where I had worked for so many years, and I regret the disappointment this will cause my fans," Itagaki said in a statement distributed Tuesday.

Tecmo has since assured fans that flagship franchises formerly helmed by Itagaki, Ninja Gaiden and the 3D fighter series Dead or Alive, will continue without Team Ninja's notorious director.

Update: Shacknews has acquired the whole of Itagaki's statement regarding his departure and legal action, viewable here, in which he apologizes to fans of his games and calls the social responsibility of Tecmo into question.

The director further revealed that, as expected, he will not be involved in any future Ninja Gaiden or Dead or Alive titles.

Original Story: Mere hours before the North American debut of Ninja Gaiden II, director Tomonobu Itagaki announced that he will leave Team Ninja and has filed suit against parent company Tecmo and president Yohimi Yasuda for unpaid bonuses and emotional damages, according to 1UP.

Citing "unreasonable and disingenuous statements" made by Yasuda and unpaid completion bonuses for the development of 3D fighter Dead or Alive 4 (360), Itagaki claimed damages of 148M Yen, roughly $1.42M at current exchange rates.

"When the time came for the [completion bonus] payment, Tecmo Co., Ltd. went against its previous agreement and refused payment," Itagaki said in his statement. "President Yoshimi Yasuda chose not only to violate this agreement, but also... Read more

Developer Tecmo today announced Tecmo Bowl: Kickoff, a revival of the classic Tecmo Bowl franchise.

Set for launch this fall on the Nintendo DS, the game will feature stylus control, customizable playbooks, classic Tecmo Bowl-style cutscenes, and multiplayer over wireless and Wi-Fi internet.

"We are extremely excited to bring back everyone's favorite football game to the Nintendo DS," said Tecmo producer Ryan Gilbo. "Kickoff is packed with everything that fans wanted to see in this revival. No other football game will ever compare to Tecmo Bowl as this is the game that started it all."

A full list of features is available after the link. ... Read more

Confirming recent rumors, Konami today announced that a PlayStation 2 version of the former PSP-exclusive Silent Hill Origins is in development.

Released on PSP last fall, Silent Hill Origins details the exploits of hallucinating trucker Travis Gordy as he explores the creepy-as-hell town of Silent Hill. Konami mentioned that the game would sport updated controls, through no further details, such as a release date or developer, were provided. It is believed that Climax Studios, which handled the PSP edition, is behind the PS2 version.

"Console gamers can now expect the same chilling, suspenseful and fear-filled experience that handheld gamers encountered when we released Silent Hill Origins on the PSP system," said Konami marketing VP Anthony Crouts.

Silent Hill Origins marks the latest PSP title to be ported to the PS2, following in the footsteps of such former exclusives as Rockstar Leeds' Grand Theft Auto: Liberty City Stories and Vice City Stories, Tecmo's Tokobot, Sony Bend's Syphon Filter: Dark Mirror, and High Impact Games' Ratchet & Clank: Size Matters. A PS2 port of Ready at Dawn's upcoming God of War: Chains of Olympus (PSP) is heavily rumored as well.

1UP and GameSpot both have previews of Ninja Gaiden: Dragon Sword posted, checking out the DS version of Tecmo's action game.

Team NINJA's Ninja Gaiden Dragon Sword (NDS), the studio's portable take on the adventures of famed video game ninja Ryu Hayabusa, will slash its way to North American retailers this March.

Much like Nintendo's The Legend of Zelda: Phantom Hourglass (NDS), Ninja Gaiden DS is controlled almost entirely through the touch screen. A downloadable demo of the third-person action game is currently available through the DS Download Stations scattered throughout retailers such as GameStop, Target, and Wal-Mart.

"Ninja Gaiden Dragon Sword brings a new level of gaming action to the Nintendo DS," said Tecmo marketing manager Yoh Watanabe. "There's currently a demo available on the DS Download Station and I urge everyone to try it out and you'll know what I mean."

Tecmo-owned developer Team NINJA has provided four more images of Ninja Gaiden II, the Xbox 360-exclusive sequel to one of the more frustratingly challenging Xbox, and later PlayStation 3, titles ever released.

Included in the bloody barrage are glimpses of severed arms and legs, along with a few decapitations. The game itself is due out at some point in 2008.

Tecmo has provided three new screenshots of Team NINJA's upcoming Xbox 360-exclusive slash 'em up, Ninja Gaiden II. Depicted in the images are evil dudes, ninja weapons, and a monster. Also released was a 45-second gameplay trailer, which you can grab on Fileshack in HD or view below. Or both!

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To learn more about Ninja Gaiden II and its gratuitous over-the-top violence, which includes severed limbs raining down from the sky, check out Nick Breckon's graphic preview.

In an unusual week of Japanese hardware sales, Microsoft's slow-selling Xbox 360 saw 475% week-over-week growth in unit sales to edge out Sony's PlayStation 3 by mere hundreds of units--17,637 to 17,434, according to tracking firm Media Create.

Microsoft's console was buoyed by Namco's exclusive Ace Combat 6, which slotted in at #2 on the hardware charts with 76,708 units. Unsurprisingly, Nintendo's marquee title Super Mario Galaxy topped the weekly list with 250,585 units. The debut was lower than some expected given the higher first-week sales of Super Mario Sunshine (GCN) and other flagship games from the Big N, but still outsold any other game by more than three to one during the week of October 29 to November 4.

Despite the bitter battle between the two high-powered consoles, both machines were outsold by the Wii, which topped Xbox 360 by about 20,000 units. Still, the release of Mario's latest outing didn't significantly bump Wii sales, and PSP came in #2 with 59,714 despite having no software in the top ten. In the least surprising news of the week, Nintendo DS trumped all by besting PSP by about 20,000 units.

Nintendo platforms dominated software, with two Wii titles and six DS titles. The other slots were occupied by Ace Combat 6 and a Banpresto-developed Super Robot Wars title for PlayStation 2 that slotted in at #4. Read on for the full list.... Read more