203w ago - Kenji Matsubara, global President and CEO of Tecmo Koei Holdings, has said that despite a difficult start in Japan, Microsoft is doing better with Xbox 360 than it did with the original console.

To quote: "Xbox 360 as a business is doing better than the old Xbox," he told Kikizo.

"They have a good opportunity for growth, but of course Sony is a Japanese company and Microsoft is known as a business software company, so brand image is one point. But Microsoft is doing well, especially considering how difficult it is these days.

"I think they have good growth potential for the future depending on the titles. We have a close relationship with Microsoft so I hope we can be a part of that."

246w ago - Square Enix announced its proposal last week to acquire a controlling stake in Tecmo. While the bid was set to expire later today, Tecmo formally rejected the offer this morning, as they believe a merge with Koei would be more fitting.

From the released statement, translated by Reuters:

Through a merger, we expect we can grow further by respecting both companies' identities and having an environment in which employees can fully exhibit their skills.

Koei, eh? Makes sense. Tecmo is popular here in the West with titles like Ninja Gaiden and Dead or Alive, while Koei is well-known for its Dynasty Warriors series, which is a huge hit in Japan.

So a merge would give them significant market share in both countries. Given the current state of the company, it's rather surprising that Tecmo passed up on Square's offer indeed.