- Sega and Sammy announced they will be merging in a new holding company called Sega Sammy Holdings in October 2004. Sega Sammy will become one of the biggest game companies in Japan after the merger, with a combined annual income of 501 billion yen a year. Sammy currently owns 25% of Sega, the deal allows Sammy to take over the remaining shares of Sega for 165 billion yen.
- In addition, Sega announced that before the merger, all seven subsidiaries (Sega WOW, Sega-AM2, Hitmaker, Sonic Team, Smilebit, Amusement Vision and Digitalrex) will be integrated back into Sega in July 2004.