Share and share alike. What is going on between Square, Namco and Enix?
Stop being so nice to each other!
AAAAHHHHHHHH!
A report from Bloomberg Japan states that games software giants SquareSoft, Namco and Enix have all taken a 5% stake in each other’s companies. Why would they do this? It’s not right.
It seems that everyone in the games industry has become a lot nicer, for want of a better word, of late. Instead of plotting world domination and the downfall of their competitors, companies seem to be throwing olive branches right, left and centre.
The reason for this series of mini-mergers was quoted to be “to cut the cost of development and spread the impact of the market’s financial risks.” This statement, especially the bit about cutting development costs strongly suggests some kind of joint venture between the companies. A share trade is often used as a goodwill gesture at the beginning of a business relationship.
The deals, worth a combined $36.3 million, effectively value the companies at the same amount, which seems a little strange. At current value, Square is worth more than Namco and Enix combined, swaying the deal quite heavily in the favour of Namco and Enix.
So what do you think? Do you like all this niceness between rival game companies? Do you think that diminishing competition will result in a poorer games market, and eventually poorer games? Only time will tell.
It seems that everyone in the games industry has become a lot nicer, for want of a better word, of late. Instead of plotting world domination and the downfall of their competitors, companies seem to be throwing olive branches right, left and centre.
The reason for this series of mini-mergers was quoted to be “to cut the cost of development and spread the impact of the market’s financial risks.” This statement, especially the bit about cutting development costs strongly suggests some kind of joint venture between the companies. A share trade is often used as a goodwill gesture at the beginning of a business relationship.
The deals, worth a combined $36.3 million, effectively value the companies at the same amount, which seems a little strange. At current value, Square is worth more than Namco and Enix combined, swaying the deal quite heavily in the favour of Namco and Enix.
So what do you think? Do you like all this niceness between rival game companies? Do you think that diminishing competition will result in a poorer games market, and eventually poorer games? Only time will tell.
Companies:
Square
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