Sega and Namco announced on Thursday that the two companies will extend their partnership in the arcade sector. The move is aimed at further reducing operating costs in the arcade business and returning the respective arcade units at both firms to profitability. The agreement covers a wide range of areas including distribution and maintenance, network alliances, procurement, promotional activities to attract new consumers, and the research and development of a next-generation motherboard for arcade machines. The two companies also discussed the mutual application of intellectual property rights, which could lead to further codeveloped projects, such as Vampire Night.

　　Sega currently runs 550 arcade centers, while Namco is currently operating 376 arcade outfits, after recently shutting down 100 individual centers. Through its continued partnership with Namco, Sega plans to increase its share in the worldwide arcade market from 28 percent to 35 percent within the next three years. The two companies said that the agreement does not pertain to the home console or handheld markets.