Things have been rough for Tecmo recently. First, the dual lawsuits from Itagaki and the staff at large. Now, the company’s president has up and left, abandoning the company while in its worst possible state. But despair not, as here comes Yoichi Wada and the rest of the Knights of Square Enix, coming to save the day... in a manner of speaking.

Wada has broken news today that the companies have been in talks since May to merge, and that the main incentive for doing so is so that Square Enix can expand its offerings beyond traditional RPG fare. The company is most interested in Tecmo’s stable of action and fighting games, as well as the Japanese company’s Western success. What is unclear is what would happen to the Tecmo brand, or if it would even continue to exist at all. In which case, the next Dead or Alive game and its patented boob physics could be brought to you by Square Enix, which would just be kind of weird.

Regardless of what would happen afterward, Square Enix has given Tecmo’s board of directors until September 4 to consider the offer. Wada is promising this won’t turn into an EA/Take-Two debacle though, as he has already stated that if Tecmo says no at that time, Square Enix will withdraw its offer and walk away. You’ve just gotta love these Japanese companies with their quaint sense of honor and nobility.