The ever-eventful history of Sega takes another twist today with the announcement that the company is to merge with Japanese amusement giant Sammy Corp.
According to a statement issued today, the merger of the companies will form a holding company on October 1st, with financial details to be decided later. Headed by Sammy President Hajime Satomi, the new company is said to be looking at annual sales of around $3.1 billion.
This can only be seen as good news for Sega, which has posted losses for five fiscal years and last year trimmed roughly 10 percent of its staff. The gaming guru now expects a group net income of 500 million Yen at the end of this financial year, a target significantly lower than its original 5 billion Yen profit forecast.
In addition to producing arcade and console games, Sammy Corp is an established player in the pachinko market, which accounted for over 90% of its revenue in the six months ending September 2002.
We all know that Sega's exit from the hardware market marked the beginning of a new and more prosperous future for the video game veterans. Let's just hope this latest move further assists their return to the top spot.
According to a statement issued today, the merger of the companies will form a holding company on October 1st, with financial details to be decided later. Headed by Sammy President Hajime Satomi, the new company is said to be looking at annual sales of around $3.1 billion.
This can only be seen as good news for Sega, which has posted losses for five fiscal years and last year trimmed roughly 10 percent of its staff. The gaming guru now expects a group net income of 500 million Yen at the end of this financial year, a target significantly lower than its original 5 billion Yen profit forecast.
In addition to producing arcade and console games, Sammy Corp is an established player in the pachinko market, which accounted for over 90% of its revenue in the six months ending September 2002.
We all know that Sega's exit from the hardware market marked the beginning of a new and more prosperous future for the video game veterans. Let's just hope this latest move further assists their return to the top spot.
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