Game maker Sega Corp. said Tuesday it will merge with pachinko machine maker Sammy Corp. on Oct. 1, thereby creating the nation's largest video game maker.
The new company, with combined revenue of more than 440 billion yen, will eclipse Konami Corp. by some 170 billion yen.
The surprise announcement came a year after the two companies walked away from a merger plan due to strong opposition from Sega game creators.
But this time, both parties promised a happy ending.