Sega and pinball machine producer Sammy have scrapped their merger plan, announced in February, after failing to agree "on what management style the merged firm should take and other merger conditions," according to Sega President Hideki Sato.
Sega"s other option to better its financial situation, namely merging with Namco, has unexpectedly vanish into thin air as well; Namco withdrew its merger offer this morning.
"Sega told us on Thursday that it was not in a situation to give a specific answer to the proposal. And we decided that it is not the right time to proceed with the merger discussions," Namco explained in a statement, leaving a desperate Sega on its own. Sato did confirm other companies had contacted Sega with respect to a merger deal, but declined to comment whether Electronic Arts had done so when asked about this.