The curse of Sega Sports hammers shares again
Investors wary of Sega: Sega Sports to blame.
Sega’s share price suffered a knock in Japan this morning, with several key investors and analysts stepping away from the oft-troubled gaming giant.
Sega stock dropped off almost 4% in a single day of trading in Japan, following Goldman Sachs shifting its rating for the Sonic the Hedgehog creator to 'underperform', believing that the company is unlikely to make sales targets in the coming months.
Again, Sega Sports and its inability to woo American gamers, seemingly hooked on an endless diet of Electronic Arts re-hashes, was blamed for the drop in price.
“We think a correction is likely if the company fails to beat the consensus concerning its home sports games in North America, for which results will be released in mid-October,” said Goldman Sachs analyst Eri Sato.
And indeed, if Sega is capitalise on its significant investment into Sega Sports, it needs to do so soon. Even dedicated Sega fans can be accused of overlooking the firm’s sports offerings. Although Virtua Striker is somehow taken under the “normal gaming” wing by most, Sega Sports proper has consistently failed to gain a foothold, either in the market, or with Sega’s fanbase.
Some may justifiably say that Sega spurned its best chance to make a dent in EA’s impressive dominance. At E3 2002, the Sega Sports showing was massive, taking up half the stand. The games shown looked better than those on show at Electronic Arts’ booth, with EA representatives spotted several times on Sega’s stand, looking at Sports titles with undeniably grim faces.
It’s fair to say that most casual punters don’t really know anything about Sega Sports. Everyone has always played EA’s sports offerings, and although often underwhelming, consumers tend to stick with what they know; a recognisable sports star on the front, and the usual menu and control systems that have been familiar for a decade.
Sega needs urgently to invest in its Sports offerings, or cut its losses at the earliest possible opportunity.
We'll bring you more on Sega's trials and triumphs as and when they happen.
Sega stock dropped off almost 4% in a single day of trading in Japan, following Goldman Sachs shifting its rating for the Sonic the Hedgehog creator to 'underperform', believing that the company is unlikely to make sales targets in the coming months.
Again, Sega Sports and its inability to woo American gamers, seemingly hooked on an endless diet of Electronic Arts re-hashes, was blamed for the drop in price.
“We think a correction is likely if the company fails to beat the consensus concerning its home sports games in North America, for which results will be released in mid-October,” said Goldman Sachs analyst Eri Sato.
And indeed, if Sega is capitalise on its significant investment into Sega Sports, it needs to do so soon. Even dedicated Sega fans can be accused of overlooking the firm’s sports offerings. Although Virtua Striker is somehow taken under the “normal gaming” wing by most, Sega Sports proper has consistently failed to gain a foothold, either in the market, or with Sega’s fanbase.
Some may justifiably say that Sega spurned its best chance to make a dent in EA’s impressive dominance. At E3 2002, the Sega Sports showing was massive, taking up half the stand. The games shown looked better than those on show at Electronic Arts’ booth, with EA representatives spotted several times on Sega’s stand, looking at Sports titles with undeniably grim faces.
It’s fair to say that most casual punters don’t really know anything about Sega Sports. Everyone has always played EA’s sports offerings, and although often underwhelming, consumers tend to stick with what they know; a recognisable sports star on the front, and the usual menu and control systems that have been familiar for a decade.
Sega needs urgently to invest in its Sports offerings, or cut its losses at the earliest possible opportunity.
We'll bring you more on Sega's trials and triumphs as and when they happen.
Companies:
SEGA
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