SEGA Return to Form

Following a rather lengthy spell in troubled waters, SEGA has finally reported a return to profitability in its latest financial statement. Rather ironically, this is apparently down to successful results in the arcade business - the slump of which contributed heavily to the company's problems in the first place.

SEGA last week scrapped the merger plans with Sammy and is now set for a revival on its own, according to the firm's president-elect Hisao Oguchi, who is soon set to replace Hideki Sato. Oguchi has said that he will devote himself to this revival and as a first measure will consider consolidating the firm's nine high-cost R&D subsidiaries into four or five - a move that Oguchi believes will "strengthen governance at our subsidiaries and improve product development capability."

Oguchi also said that he is looking into a plan to set up a special team of top executives from each subsidiary, which will be positioned directly under control of the president.

"By doing so, I want to speed up our response to changes in the market, as changes in the entertainment market is [sic] taking very rapidly," he said at a press conference.

We'll keep you posted.