Sega of Japan have announced that they are to merge with pachinko slot machine maker Sammy Corp, from October.

Sammy President Hajime Satomi is believed to be in line for the role of heading up the new company, in an attempt to take both Sega and Sammy forward in a bid to form a comprehensive entertainment firm.

Sega (who have been in financial difficulties since pulling out of the console manufacturing business during 2001) and Sammy hope that the combined abilities of the two companies, with Sega's hugely respected global brand, and Sammy's high growth, will see the companies develop new business opportunities spanning a wide age range.

The King of Fighters and Guilty Gear series of games, plus a selection of arcade cabinet based machines have made Sammy an established name over the years, with the company developing a wide range of novelty and prize based machines - it's expected that the Sega brand could be used on future games, and also that some Sammy titles may be published on console formats.