"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.

Separately of these new announcements, Gamasutra recently spoke to Koei pres..."