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Wow this news has to be the best thing that has happened in my time as a hello project fan so far.

I think this was the meeting where they decided on the changes:

(first two minutes)

Rina (at front of the table): We have to understand the differences in forms of media!
Akari: Ah ~~~
Meimi (reading an action manga): Are we really going to be turned into an anime? We're just S/Mileage, you know.
Ayaka: I think a drama CD is good enough for us.
Miro: According to the reviews I have read they have really shown much growth as a group and the second gen members aren't very cute.
Rina: Stop putting ourselves down! Besides, this is the first step in S/Mileage taking over the world. If we can sell more CD's then our allowances will go up!
Akari (looking shocked): Allowances, you say?
Rina: That's why we need new ways to push S/Mileage. What about a new name?
Meimi: What's wrong with our old name?
Miro: Why not keep things the way they are?
Rina: Shut up! In the age of the idol wars the old ways will not survive!
Meimi (looking excited): I got it, we need more action! We need to gather the seven balls together to make our wish come true!
Akari: What???? (gets smacked) ouch
Miro: I think we need to think of our female audience as well. We should add another male character and have him fall in love with takechan.
Akari (pointing to the projected image of her embracing Kana): Wait, who is that?
Miro: He's quite popular among folks at East Ikebukuro. He gained the number one spot after Eripon-sama.
Rina: Anyway, we should decide on a new name for the group.
Meimi: Why not Shin S/Mileage?
Ayaka: Too long, we should shorten it to Shi-ge.
Rina: We could write it in hiragana and put a star in the middle of it.
Meimi: We could gather the seven balls with stars on them!
Rina (writing on the board): We should change the name of our webcast as well. (Writes "SML4") What comes after 7?
Akari: Don't write that!
Rina: How will our viewers understand?
Akari: We'll get sued!

I would assume that Sakurako and Rena won't be chosen unless UF changed their minds about surnames.

Shocked about the name change but no about the new members. Kanon or Ayaka mentioned awhile ago that'd it be good if S/mileage could be like Morning Musume in that aspect. It was like 5ever ago tho, like long enough ago that I was checking for S/mileage

...What's the UF rule on surnames, denki?

wow!! really wasn't expecting the name change

my interest in s/mileage is basically nonexistent nowadays so i'm okay with a "new" group replacing them.

^^I'm guessing they mean that they won't be adding members with last names that have already been 'used'. (Ogawa Saki and Ogawa Rena, Wada Ayaka and Wada Sakurako)

@Giraffe-san: Not really an official rule, but they never added any new members of a main group with the same surname as a current or previous member.

I was originally miffed about this, but I'm coming around now. The fact that the new members are coming from KKS is great news (since S/ was originally created from Eggs), and I'm excited that the change will come so quickly, with the announcement in less than 2 weeks! The name change is weird, though... like, why tear down all that brand recognition you've already made for yourself? I understand that changing their name is also a way to create buzz, but only for a moment. Unless the name change ends up only being something minor (S∞mileage?), it just seems detrimental to the longevity of the group.