TOKYO--After a long courtship, a tragic breakup, and a tearful reunion, Sega and Sammy today officially established their new holding company, Sega Sammy Holdings. From today on, the two former rivals will begin working together as part of the Sega Sammy group. The $1.4 billion merger is expected to make Sega Sammy one of the largest amusement game and pachinko manufacturers in Japan, with forecasted net sales of 442.48 billion yen ($4.01 billion) for the current fiscal year.

　　Over 30 different companies are now members of the Sega Sammy group, such as the game studios Dimps (Seven Samurai 20XX) and Red Entertainment (Blood Will Tell) as well as lesser-known companies like Sammy Golf Entertainment and Wave Master.

　　According to Sega Sammy Holdings' official Web site, the holding company has launched with 10 billion yen ($91 million) in capital and a total of 60 employees culled from Sega and Sammy. CEO Hajime Satomi will hold position as representative president and chairman of Sega Sammy Holdings, while Sega president Hisao Oguchi will take the mantle of executive vice president. Sammy president Kenkichi Yoshida (a former coworker of Oguchi's from their days as Sega game designers) will be the board director.

　　"In order to become the world's top entertainment industry, Sega and Sammy will work together to provide entertainment towards people of all ages throughout the globe," said Sega Sammy Holdings president and CEO Hajime Satomi in the company's press release.

　　Sega Sammy Holdings predicts rapid growth during the next two years, mainly in the area of pachinko, pachislot, and other coin-operated games. The company aims for a group net profit of 51 billion yen ($462 million) in FY2006 and 68 billion yen ($620 million) in FY2007. The current fiscal year's estimated combined net profit is 47.5 billion yen ($433 million).