The home technology market could be dominated by Sega after it bought fellow Japanese toy and electronics company Bandai for $1.09 billion yesterday.
Although both companies market toys, they also have extensive video game, software and IT businesses. The deal will help Sega market a wider range of electronic games and characters - for example, Bandai?s Power Rangers could be used in a Sega Power Rangers video game.
The acquisition is a clear warning to other computer and video game manufacturers, including Sony and Nintendo. The combined company, Sega Bandai Limited, said the merger allows it to maintain profit margins and be more competitive, after both partners recently warned that their growth was slowing.
Despite poor domestic sales, Bandai is set to launch Pippin, a simple games, IT and Internet device, outside Japan within months. Pippin is the result of Bandai?s collaboration on the budget machine with Apple Computer.
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