Following SEGA's recent posting of a massive financial loss, analyst Bruce Everiss has said that the company is "gaming's juiciest takeover target".
Everiss, who was a senior marketing exec at Imagine and Codemasters and the publisher of the short-lived Liverpool Software Gazette, states:
Sega Sammy Holdings - the holding company for SEGA and the "pachinko" and "pachislot" gambling machine maker Sammy - said last week that it expects losses for the 2007/08 financial year to total ¥26 billion (£123 million). That compares to a previously forecast net income of ¥1 billion (£4.8 million). As a result, the company announced that it will cut 400 jobs at SEGA.
SEGA executives see the increased regulation of gambling uses for pachinko systems (for which SEGA expects to see profits decline by 85%) along with the impact of the Wii on amusement arcades as primary factors in their financial situation.
On the software front, however, the Wii has proved a boon. "In the consumer business", the company said in a release, "overseas videogame software sales were up compared with the same period in the previous fiscal year with strong sales of Mario & Sonic at the Olympic Games". Sales in Japan, however, were not as strong.
As well as the job cuts, SEGA announced back in November that it would close 80 of its 430 amusement arcades by March.
Source: Seeking Alpha
Everiss, who was a senior marketing exec at Imagine and Codemasters and the publisher of the short-lived Liverpool Software Gazette, states:
"So now they are a sitting duck to be taken over themselves. And there can be very few juicier targets. Given good management and that heritage of IP, Sega would be a license to print money. And the icing on the cake is that the buyer would get a very strong foothold in the Japanese market."
Sega Sammy Holdings - the holding company for SEGA and the "pachinko" and "pachislot" gambling machine maker Sammy - said last week that it expects losses for the 2007/08 financial year to total ¥26 billion (£123 million). That compares to a previously forecast net income of ¥1 billion (£4.8 million). As a result, the company announced that it will cut 400 jobs at SEGA.
SEGA executives see the increased regulation of gambling uses for pachinko systems (for which SEGA expects to see profits decline by 85%) along with the impact of the Wii on amusement arcades as primary factors in their financial situation.
On the software front, however, the Wii has proved a boon. "In the consumer business", the company said in a release, "overseas videogame software sales were up compared with the same period in the previous fiscal year with strong sales of Mario & Sonic at the Olympic Games". Sales in Japan, however, were not as strong.
As well as the job cuts, SEGA announced back in November that it would close 80 of its 430 amusement arcades by March.
Source: Seeking Alpha
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Comments
deleted 12 Feb 2008 18:18
1/8
Once upon a time I would of said that anyone taking over Sega would kill the games industry, now a days I’m looking forward to the inevitable, because god knows all those juicy IP`s of yesteryear need redoing only not by Sega who I believe have lost the plot in gaming.
Just as Bioware are doing a sonic RPG, perhaps we could see, some other wonderful yet neglected or ruined franchises reborn into new age gaming.
Some people are not going to like me for saying this but its perfect for microsoft, if Microsoft could get hold of Sega it could give them some great advantages, one being Sonic, the 360 doesnt have a mascot (yeah yeah Banjo is coming but show me the goods and ill agree), also XBLA is perfect for segas past collection as we have seen but even better if that past collection no longer See`s Virtual console?, other IP`s, and did anyone say Saturn/Dreamcast downloads?
after all the 360 pad is basically a DC pad, only better! now how can you incorp the VMU, Hmmm?
Just as Bioware are doing a sonic RPG, perhaps we could see, some other wonderful yet neglected or ruined franchises reborn into new age gaming.
Some people are not going to like me for saying this but its perfect for microsoft, if Microsoft could get hold of Sega it could give them some great advantages, one being Sonic, the 360 doesnt have a mascot (yeah yeah Banjo is coming but show me the goods and ill agree), also XBLA is perfect for segas past collection as we have seen but even better if that past collection no longer See`s Virtual console?, other IP`s, and did anyone say Saturn/Dreamcast downloads?
after all the 360 pad is basically a DC pad, only better! now how can you incorp the VMU, Hmmm?
soanso 12 Feb 2008 18:44
2/8
When Sammy tried to merge with SEGA I think they weren't that happy with the idea.
I bet it's Sammy that's the loss making parter.
It would not be a good thing if Microsoft took over SEGA, it'd be even worse if EA took them over. They really should have merged with someone else.
Namely
NAMCO!
I bet it's Sammy that's the loss making parter.
It would not be a good thing if Microsoft took over SEGA, it'd be even worse if EA took them over. They really should have merged with someone else.
Namely
NAMCO!
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XKaiminalX 12 Feb 2008 19:05
3/8
Why don't Nintendo buy SEGA? Nintendo knows all of SEGAs franchises through and through and the merge of Mario and Sonic was brilliant. Microsoft taking over SEGA is going to be annoying that means i need to buy a 5th 360 just to play a Sonic game.
Absinthe-Review.net 12 Feb 2008 20:03
4/8
"As well as the job cuts, SEGA announced back in November that it would close 80 of its 430 amusement arcades by March."
...just brings a tear to my eye.
...just brings a tear to my eye.
john 12 Feb 2008 20:34
5/8
now what if nintendo bought sega. there'd be mario and sonic games all over the show.
microsoft should jump at buying them out. they need a more family appeal that sega once had.
if sony took them, i think shenmue 3 would be the one thing the ps3 needs.
Shenmue was the best game i've ever played, pure gaming greatness.
microsoft should jump at buying them out. they need a more family appeal that sega once had.
if sony took them, i think shenmue 3 would be the one thing the ps3 needs.
Shenmue was the best game i've ever played, pure gaming greatness.
get me a tea dear 13 Feb 2008 08:57
6/8
microsoft buy sega and release the Sega xbox in japan, sells nearly twice as much as usual(yes 10k a week!...)
Shenmue 3 is made and world peace is achieved for 10 hours while it is played.
Shenmue 3 is made and world peace is achieved for 10 hours while it is played.
realvictory 13 Feb 2008 13:55
7/8
Anyone buying Sega is bad for games.
Most potential buyers themselves are nothing in comparison to Sega, even if they are richer, making buying Sega a bargain for them. What everyone really needs is someone to buy Sega because they are a Sega fan, not just for business.
Most potential buyers themselves are nothing in comparison to Sega, even if they are richer, making buying Sega a bargain for them. What everyone really needs is someone to buy Sega because they are a Sega fan, not just for business.
HyperTails 13 Feb 2008 19:06
8/8
Sega need to sort themselves out. Not just financially, but games wise too. They've made hardly any good games since 2001 and the Sonic franchise has turned so bad if it was like that in 1991 the Mega Drive would've been laughed out of town.