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Gamasutra - Koei President Matsubara Explains Third-Party Challenges In Japan

To the surprise of many, Tecmo last week rejected a friendly takeover offer from Square Enix in favor of a merger with Dynasty Warrior publisher -- and rival -- Koei.

Tecmo and Koei are now working on a detailed merger plan together, as Tecmo has said joining up with Koei gives it a better shot at "boosting corporate value," even though the proposed merger would create a company only a third Square Enix's size.

Gamasutra recently spoke to Koei president Kenji Matsubara, who says that the current market in Japan "is very tough for third parties like us to do our business," which suggests that it may indeed be better in the eyes of smaller developers to join forces, rather than to be consumed by the larger ones.

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