Video game maker Namco Ltd. said Thursday that rival Sega Corp. has until May 9 to make a decision on a merger proposal submitted by Namco.

"Half a month has elapsed since we put forward the merger proposal in mid-April," Namco said in a statement. "We have concluded that we should confirm the other's intention in order to establish the stability of the two companies' business conditions."

On April 17, the two companies confirmed that Namco had asked Sega to engage in merger talks.

Namco added in a separate statement that the amalgamation would "contribute to the development of the amusement industry."

Sega meanwhile said that it would "consider the Namco proposal together with a plan to integrate business operations with" commercial game maker Sammy Corp.

Sega had announced in February that it was considering a consolidation maneuver involving Sammy, possibly in October.

According to industry sources, Namco's offer has complicated Sammy's pursuit of Sega's attractive software resources.

In addition, Electronic Arts Inc. of the United States, the world's largest game software developer, has expressed interest in a capital or business tieup with Sega.

A merger between Namco and Sega would create Japan's largest game software company, boasting combined annual sales of 350 billion yen. This would surpass current leader Konami Corp., whose sales for fiscal 2002 are estimated at 250 billion yen.

Namco and Sega have been involved in a comprehensive business tieup in the amusement field since September 2001.

They launched negotiations on complete integration last year. The negotiations were later suspended at Sega's request.