Sega shares take a nosedive

20% loss as EA takes US market.

Posted by Staff
Panzer Dragoon Orta
Panzer Dragoon Orta
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The consumption of humble pie is not uncommon at Sega. Following four successive hardware failures, a refreshed Sega began a war of words with Electronic Arts, centering around who would be the leading multi-platform developer and publisher.

This culminated in Sega executives attributing much of EA’s success to a series of “lukewarm sports titles.”

So today’s news that Sega shares lost almost 20% in a day’s trading, largely due to Electronic Arts’ dominance in the US market, will not be at all welcome at the Sonic creator’s Tokyo HQ.

With all the humility a human can muster, Sega president Hideki Sato said simply, “We significantly miscalculated the forecast for our videogame operations. We underestimated the brand power of Electronic Arts. We were totally beaten.”

For the record, this is bad news for gamers the world over. Sega, without question is the most innovative and talented games outfit to have ever existed. To lose such talent and to be duped by marketing will see a downturn in videogame standards across the board. Think before you buy. Do your research and make the right choice for yourself, and for the rest of us.
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