 Both companies in a joint statement cited Japan's decreasing birth rates and advancements in technology as the reason for the merge, and to increase their relevance to newer audiences.Both companies worked independently under the newly formed Bandai Namco Holdings until March 31, 2006, when their video game operations were merged to form Namco Bandai Games.Earlier on January 26, Namco Hometek and Bandai Games merged to form Namco Bandai Games America, the North American division.