Microsoft & Ea May Make Bid For Sega

Troubled videogame company Sega, which had announced plans to merge with Sammy Corporation, may have two new suitors: Microsoft and Electronic Arts.

The Asian Wall Street Journal reported on Thursday that both companies were considering buying all or parts of Sega, although no formal talks were ongoing.

Earlier this month Sega said it was planning to merge with Sammy Corporation, a maker of pinball gaming machines and software. The transaction was expected to be worth at least USD1.1 billion, and at the time, Sammy President Hajime Satomi said the merger would take place in October.

But reports say that insiders at Sega -- which makes software for platforms including Microsoft Xbox, PlayStation and Nintendo's GameCube -- were unhappy about the proposed marriage with Sammy.

Sega abandoned its console ambitions in 2001 when its Dreamcast console delivered disappointing sales, but it has continued to struggle with falling sales, and earlier this month it cut its profit forecast by 90 percent for the year.

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Source: The Register