Imagine Square Enix's proposed takeover of Tecmo as a high school "romance." In it, Square is the suave campus hunk who professes his burning desire for Tecmo, the hottie who could have any guy (or girl) she wanted. But Tecmo not only shoots down the advance, she decides to "go out" with the scrawny, less attractive Koei instead.

She won't say why or even return Square's calls.

Square turns around and says, "Under such circumstances, the Company is unable to make appropriate modifications to major terms of the Proposal including the TOB price, and determines that it is extremely difficult to continue the discussions with Tecmo based on the Proposal. The Company, therefore, has decided to withdraw from the Proposal."

Blank stares.

"What I'm trying to say is I'm withdrawing my proposal to take you over," Square tells Tecmo, working his idea of emo for all its worth. Tecmo just smiles and says, "Hee! You're funny! Bye-eee!"

The End?

Good news, Tecmo employees! No no, please don't get up. That bed under your desk really looks quite comfortable and snuggly. Now, if you'll just minimize that window filled with Ninja Gaiden II: Burnt Sienna code ... there, that's it. You'll be pleased to note that Tecmo has reached a settlement with Hiroaki Ozawa and Tatsuki Tsunoda of Team Ninja, who recently filed a lawsuit against the Dead or Alive publisher in response to an alleged overtime pay dispute.

According to Gamasutra, the pair claimed that employees (like you!) were not paid according to documented overtime hours, going as far as to say that the company created false documents to cover up the salary shenanigans. With this lawsuit wrapped up, it still leaves one to go with departed Team Ninja boss, Tomonobu Itagaki.

Alright, back to work! And go brush your teeth, seriously.

Square Enix's proposal to buy an Itagaki-less Tecmo has been rejected. According to Reuters, the Ninja Gaiden and Dead or Alive publisher instead said that it would merge with Koei, making it entirely within the realm of possibility that we'll soon be playing Dynasty Warriors Xtreme Kingdom Beach Games.

Tecmo said Koei would offer "a greater chance of boosting corporate value" (our analysis: Koei wouldn't overshadow Tecmo like Square Enix would). The Final Fantasy publisher, which initially offered $206 million for a merger "on friendly terms," said it would try to (infinite un)discover more details on the Koei merger in order to figure out Tecmo's rationale and then decide what to do next. This isn't the last (remnant) we've heard of it.

Under the new leadership of Fatal Frame alumni Jin Hasegawa, Tecmo's Itagaki-less Team Ninja is poised to unveil its latest titles at Tokyo Game Show, IGN reports. Newly appointed Tecmo president Yasuhara Kakihara began a press conference in Tokyo today with an announcement that the studio has three new action games aimed at a "worldwide audience" prepped for TGS, which gets underway on October 9.

Tecmo has also firmed up its US release schedule for the rest of 2008, which includes the M.I.A. Wii title, Rygar: The Battle of Argus, listed for December. The remainder of the publisher's '08 slate includes: Robocalypse (DS, 10/28), SPRay (Wii, 10/28), and Tecmo Bowl Kickoff (DS, November).

Microsoft and Tecmo announced today that Ninja Gaiden II has sold a million copies worldwide over the last two months. It's the sort of good news Tecmo could use while it faces a buyout by Square Enix.

Ninja Gaiden II was well received when it released, but was criticized for not being as balanced as the original and for failing to rectify the hilariously wonky camera positioning. Game sales are great, but here's what we really want to know: How many people bought the Ninja Gaiden II "horse armor" on XBLM?

It seems Dead Fantasy might just becomes a living reality after all. Square Enix has announced its intention to purchase a majority stake in Tecmo, the Japanese company which recently bid farewell to both its president and most recognizable rockstar developer. As detailed in a press release issued this morning (via IGN), the house that built Final Fantasy (and vice versa) is offering Tecmo shareholders a 30% premium over the company's closing price on August 28th. If successful, the deal would see Tecmo fall under Square Enix Holdings, while retaining its brand and corporate structure.

Yoichi Wada, president of Square Enix, expressed hope that both developers would benefit from the deal, with the RPG maker gaining some inspiration from Tecmo's expertise in the action genre. Presumably, the folks at Tecmo would gain some pointers on in-game cameras in return.

We'll let you know what happens as soon as the suits are done talking.

Tecmo president Yoshimi Yasuda pulled a Mr. Hudsucker (minus the dying) and has left the company citing personal reasons. GI.biz reports his sword will be taken up by chairman of the board Yahuharu Kakihara as of Sept. 1.

Yasuda's personal reasons for leaving Tecmo might have something to do with the lawsuit brought by Ninja Gaiden's leather aficionado developer, Tomonobu Itagaki. Tecmo took a hit to its stock following Itagaki's departure (and subsequent fallout), so this changing of the guard might be a sign that the company is ready to clean up the mess and move on.

Former head of Tecmo's Team Ninja and leather aficionado, Tomonobu Itagaki, is proving himself to be quite the legal eagle hawk whatever bird a ninja might keep as a pet in his ongoing lawsuit against his old employer. In addition to upping his claim for damages from 148 million yen ($1.3 million) to 164m yen ($1.6m) for bonuses and salary not paid, the Dead or Alive creator delivered a blow to accusations by Tecmo president Yoshimi Yasuda that he was never promised bonuses in the first place.

The evidence: an audio recording of Yasuda specifically stating that a legal document known as a ringi, which outlined the contested bonus plan, had in fact been approved by Tecmo's board of directors. Take that! If that didn't sting, Itagaki said (in what we're guessing was a stern voice): "I am prepared to reveal this evidence as the need arises for the sake of greater justice." Hear that? Greater justice. Everything the guy does is intense.

Let's face it, we hardcore gamers are always looking for an excuse to play ninja dress-up. After obliterating tens of thousands of nameless, demonic foes, what greater satisfaction could there be than in donning a leopard print bodysuit and doing it all over again? That's the thing, palette swaps used to be bonuses for our hard-earned mileage; easter eggs buried at the end of the playing field. Not premium DLC.

In the real world, buying a sassy lil' getup can be a cathartic release. In virtual land you just feel like a chump. So Tecmo, Team Ninja, Microsoft, whoever, take your Ninja Gaiden "horse armor" and shove it!

Tecmo has issued a pair of press releases discounting certain "foreign media" reports (um, like, this one and that one), which allege that dozens of Team Ninja developers are leaving in the wake of Itagaki's resignation and that a lawsuit has been filed against the company on behalf of all employees. Tecmo called the rumors of a mass exodus "groundless" and claimed details about the lawsuit are "inaccurate." Tecmo pleaded with the media to be "fair" about the developing reports, as its employees have grown noticeably anxious. We'll keep you updated as we tiptoe toward a better understanding of the situation.

Update: Tecmo's sent along an English language version of the statement. Peep it after the break.

[Thanks Ittousai!]

Following the very public resignation of Tomonobu Itagaki two weeks ago, Tecmo has appealed to the Tokyo District Court seeking to restrict Itagaki from making further public remarks about ... any and every -thing that begins was a capital "T" ands ends with an "ecmo." The company filed with the court last Tuesday, June 10, but has yet to receive a verdict, Famitsu reports. The gag order seeks to prohibit Itagaki from:

1. Disclosing, destroying or leaking Tecmo's trade secrets, especially those concerning software, development and marketing
2. Making false or misleading statements about Tecmo's business policies and strategies, or criticizing games developed by other Tecmo employees
3. Making defamatory remarks to damage Tecmo's reputation
4. Making public statements about Tecmo, or accepting media invitations (e.g., interviews) to discuss Tecmo while still employed (until July 1) by the company

No word yet on whether or not Tecmo has ordered up an additional 300 gags. But buying in bulk certainly saves time and money.

[Big thanks to Ittousai over at Engadget Japan for his translation work!]

We thought it was bad when Tomonobu Itagaki left Tecmo, but little did we know it was about to get much, much worse. As rumored over the weekend, employees of the company are suing for unpaid bonuses. Well, it's not exactly the same as the weekend rumor, which said the lawsuit would come from three dozen or so higher ups. No, apparently the lawsuit has been filed on behalf of all 300 of the company's employees. A Famitsu article on the subject also says the suit complains of employees not getting holiday and overtime pay that they are owed.

So, in short, Tecmo is eating itself. You may now carry on with your day.

[Via X3F]

Losing one of your company's most recognizable figureheads, especially one whose name is so closely associated with most of your best-selling properties, is bound to put a damper on things around the office. However, that last statement assumes that there are still people in the office -- 1UP recently printed a rumor that as many as three dozen Team Ninja higher-ups could be leaving the company following Tomonobu Itagaki's resignation, and will sue Tecmo to gain unpaid bonuses for the games they've completed (much like the class-action suit Itagaki planned to file against the company following his departure).

1UP's source for the rumor was the ever-present "word on the street", though that's likely just rumorese for "we have an inside source". Whoever it may be, we doubt it's the same hopeful Tecmo higher-up who recently assured the public that Team Ninja was going to be just fine, as losing your poster boy, a heartbreaking amount of stock market value, and supposedly, a healthy portion of your workforce in such a short period of time would surely make any game developer feel anything but.

Turns out Tomonobu Itagaki's imminent lawsuit might not be Tecmo's biggest problem after all. Within two days of the Ninja Gaiden developer's abrupt resignation from the company, Tecmo shares on the Tokyo Stock Exchange dropped rapidly.

Assurances that Team Ninja would remain (largely) intact apparently did not appease the stockholders. Shares dropped over 10% from Tuesday's closing of ¥1,102 (USD 10.40), to today's closing of ¥982 (USD 9.30). Not a good start to the company's new Itagaki-less lifestyle, to be sure.

Now that Ninja Gaiden 2 developer Tomonobu Itagaki has departed from Tecmo and Team Ninja (and left a lawsuit in his stead), our friends at X3F have compiled a retrospective on Itagaki's career with the company. From his beginnings as a programmer for Tecmo Bowl, through Dead or Alive and Ninja Gaiden and all the way to his departure, everything is covered.

Join us as we take a stroll through memory lane and examine the games, the controversies and the impending future of Tomonobu Itagaki. Click here, get educated.