SEGA's Pachinko Problems Lead To Profits Plummet
Sonic's parent company sees cash falling out of its pinball-a-likes
SEGA- SAMMY, the parent company of real games creator, SEGA, has seen net sales for the consolidated fiscal year drop by 4.5% year on year to ¥528,238 million, and operating income was ¥76,530 million, down 35.8%.
Of course, this wasn't the fault of the company's video game division, according to the company, "Net sales in this segment (Pachislot and Pachinko Machines) totaled (sic) ¥213,710 million, down 19.9% year on year, and operating income was ¥71,102 million, dropping 28.8%."
Here, in fact is what SEGA-SAMMY says about its games wing,"In the home videogame software and toys industry, videogames for various new portable game consoles targeting wider age segments and new users proved extremely popular. This was particularly noteworthy amid challenging market conditions marked by industry realignment triggered by the integration and merger of major companies. The emergence of a series of new game platforms since last year is giving rise to growing expectations of higher demand for software sales, but more advanced requirements in hardware specifications are expected to increase R&D-related cost outlays. This is expected to further highlight differences between software developers in terms of product development capabilities and financial resources."
So, while the Pachislot and Pachinko (think pinball) business looks to be dragging the chain, the company is bullish about its real creativity, saying in its Consolidated Financial Statement for the year ending March 31 2007, "In the Japanese consumer market demand from new, casual participants attracted by the Nintendo DS and Wii is expected to continue. Additionally, with the addition of various new platforms from several makers we expect healthy demand not only in Japan, but in the North American and European markets as well."
Of course, this wasn't the fault of the company's video game division, according to the company, "Net sales in this segment (Pachislot and Pachinko Machines) totaled (sic) ¥213,710 million, down 19.9% year on year, and operating income was ¥71,102 million, dropping 28.8%."
Here, in fact is what SEGA-SAMMY says about its games wing,"In the home videogame software and toys industry, videogames for various new portable game consoles targeting wider age segments and new users proved extremely popular. This was particularly noteworthy amid challenging market conditions marked by industry realignment triggered by the integration and merger of major companies. The emergence of a series of new game platforms since last year is giving rise to growing expectations of higher demand for software sales, but more advanced requirements in hardware specifications are expected to increase R&D-related cost outlays. This is expected to further highlight differences between software developers in terms of product development capabilities and financial resources."
So, while the Pachislot and Pachinko (think pinball) business looks to be dragging the chain, the company is bullish about its real creativity, saying in its Consolidated Financial Statement for the year ending March 31 2007, "In the Japanese consumer market demand from new, casual participants attracted by the Nintendo DS and Wii is expected to continue. Additionally, with the addition of various new platforms from several makers we expect healthy demand not only in Japan, but in the North American and European markets as well."
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Comments
Joji 14 May 2007 17:27
1/2
So in short, they are ditching (or cutting back on) the Pachinko slots, to focus on gaming. Makes bleedin sense if you ask me. In the grand scheme of things, Sega Sammy can make a hell of a lot more money from focusing on games, than any pachinko digs out east.
Perhaps we'll see more focus from Sega now (as well as diggin out some more of Sega past treats to build on), instead of debacles like 360/PS3 Sonic.
Bring the love back Sega, we want you back at your best. Sonic SotR, Nights and Sega Rally are already a good start.
Perhaps we'll see more focus from Sega now (as well as diggin out some more of Sega past treats to build on), instead of debacles like 360/PS3 Sonic.
Bring the love back Sega, we want you back at your best. Sonic SotR, Nights and Sega Rally are already a good start.
editor 14 May 2007 19:49
2/2
This is interesting news - but the consumer media seems to have spun the information.
Pachinko is dead, been in real problems for years, but rather than being pulled down, companies like Sammy, Playmore and Azure have looked to jump ship.
- Sammy snagged SEGA with CSK's second round support
- Aruze snagged SNK, then lost it! (sued and lost again!)
- Playmore snagged SNK and is looking at Capcom!
At this time all the Pachinko sites are taking a beating, and now being changed into FEC and Mixed-Entertainment venues. This comes as Sega, Namco and Konami repeat increased revenue from coin-op sales and operation!
PachiSlot was a last ditch attempt to try and find a gaming alternative - dose it hurt just to say, hey Pachinko has been superseded by a increase in video amusement interest!
Just my 2 sense.
Pachinko is dead, been in real problems for years, but rather than being pulled down, companies like Sammy, Playmore and Azure have looked to jump ship.
- Sammy snagged SEGA with CSK's second round support
- Aruze snagged SNK, then lost it! (sued and lost again!)
- Playmore snagged SNK and is looking at Capcom!
At this time all the Pachinko sites are taking a beating, and now being changed into FEC and Mixed-Entertainment venues. This comes as Sega, Namco and Konami repeat increased revenue from coin-op sales and operation!
PachiSlot was a last ditch attempt to try and find a gaming alternative - dose it hurt just to say, hey Pachinko has been superseded by a increase in video amusement interest!
Just my 2 sense.