Sega Enterprises announced that it will directly sell console and software units to retailers in Japan by merging its distribution subsidiary, called Sega United, with Mumin, a major wholesaler in Japan. The new company, tentatively called Sega Mumin, will become a wholesaler with annual sales in excess of 900 million. Starting in the fiscal year 1998, more than 50% of Sega's game related goods will be sold through this company to retailers in Japan. In addition, the company will reduce the number of wholesalers that are currently dealing with Sega United. The company will start selecting about 5,000 game retailers that have a good sales record, and begin distributing goods to them.